Daffy’s, an affordable retailer that boasts “clothing bargains for millionaires” on its signage, is set to close all 19 of its locations sometime by the fall, it was announced today.
The company, which was founded in 1961, will be laying off a total of 1,300 employees.
“All associates will remain employed and receive pay and benefits for at least 60 days,” the company said in a statement.
Daffy’s “deeply regrets that this action was necessary due to the impact on its business of the uncertain economy and weak consumer spending, and a lack of viable financial and business alternatives,” the company added.
Daffy’s recent money woes lead it to ask buyers to “go on vacation” while also cancelling orders, according to reports. It had been looking for a buyer for the $150 million chain in June.
Daffy’s has a number of prime retail locations throughout New York City, including a 10,245 square foot space at 335 Madison Avenue. The retailer also has locations at 50 Broadway, 462 Broadway, and 125 East 57th Street.
The East 57th street location, sized at 54,000 square feet, could prove attractive to a number of large retailers.
“Big box retailers that have been looking for locations in prime streets may now revisit such spaces as that one in particular, which is a very nice building, to see if they are willing to go off Fifth Avenue, where space of that size is going to be insanely expensive,” said Alan Schmerzler, an executive director at Cushman & Wakefield.
As for the rest of Daffy’s real estate, Mr. Schmerzler expects it to be absorbed “if it is priced well.”
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