Neiman Marcus said in a court filing that it will be vacating its space at the shopping mall in Hudson Yards. If Related fails to find another tenant quickly, the empty space could hurt other retailers there and tarnish the new development’s image.
- Be Smart: Around the time of Hudson Yards’ opening in 2019, some Neiman executives regretted signing a lease in the mall as they worried about diverting business away from the company’s existing Bergdorf Goodman store, according to the WSJ. The three-level Hudson Yards store, located on upper stories, struggled to draw the foot traffic enjoyed by luxury tenants on the development’s ground floor.
- Worth Noting: The bankrupt Dallas-based company added three other Neiman stores to its list of closures, out of a total of 43 Neiman-branded locations. That’s on top of 17 Neiman Marcus Last Call stores the company said it was closing before its bankruptcy filing in May. Neiman is inching closer to getting out, a process that will let it cut the bulk of its $5 billion in debt.
- Vacancy allows for potential mass exodus: Related has been marketing the Neiman Marcus space to potential office tenants. However, the luxury brand was considered such a significant selling point that several other stores in the mall reached agreements in their leases that allow for rent discounts or exits if Neiman vacates and no equal replacement is found. [CNBC+WSJ]