The Italian house filed a lawsuit Sunday against the owner of its main store in the United States on Fifth Avenue to cancel its lease. Indeed, the global pandemic has taken the brand away from the closure of its shop, causing a dead loss for the latter.
Valentino told his landlord Savitt Partners at the time that it intended to terminate its lease by the end of the year. The lease was inaugurated in August 2013 and is due to expire in 2029.
At the time of the reopening of the major retailers, the property, which real estate brokerage firm Cushman & Wakefield reported averaged $2,513 per square foot in rent when Valentino’s lease began in August 2013, no longer meets the brand’s business aspirations.
Declining Avenue during the Pandemic
It claims that the site is no longer considered a prime real estate property in the context of the global pandemic and contrary to the terms of the space use agreement.
Indeed, the latter states that the four-storey store, located two blocks south of the Trump Tower, is “consistent with the reputation for luxury, prestige and high quality in the immediate neighbourhood.
A condition and a choice location for the brand which, like the surrounding houses, has nevertheless seen its sales largely impacted by the coronavirus.
“In the current social and economic climate, filled with COVID-19 restrictions, social distancing measures, a lack of consumer confidence and a prevailing fear of frequenting ‘non-essential’ luxury shops in person, Valentino’s business in these premises has been paralysed,” said Lucas Ferrara of Newman Ferrara LLP on behalf of Valentino.
Savitt’s lawyer, Robert Cyruli, declined to comment on the trial, saying: “My client did not choose to litigate through the media.” Valentino and his lawyer also declined to comment.
Valentino is not the only one to take such action, as Victoria Secret filed a similar case on June 8 to cancel the $938,000 monthly lease for its Herald Square store in Manhattan.
A reorientation in favor of online commerce
However, the lawsuit, which follows the joint complaint filed with Amazon last week about the alleged counterfeiting of Valentino shoes offered for sale online, supports the Italian brand’s desire to focus on online commerce.
Featured photo : © Google Maps
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