Juicy Couture Given $50 Million to Leave Embattled 650 Fifth Avenue
Juicy Couture‘s velour tracksuit dispensary at 650 Fifth Avenue could close as soon as January. And the popular, if widely mocked, retailer will receive $50 million for vacating the building with over seven years to go on its lease.
Earlier this month, U.S. District Judge Katherine Forrest gave SL Green and Jeff Sutton permission to acquire the master lease for roughly 32,000 square feet of retail space at the property. That development followed a September verdict that Alavi Foundation and Assa Corporation had to forfeit their ownership stakes in the building after they violated sanctions against and money laundered for the Iranian government. The Shah of Iran funded the construction of 650 Fifth Avenue in the late 1970s.
Lois Weiss of The New York Post reports that the Juicy deal includes 18,000 square feet between the basement, ground and second floors. An additional 11,000 square feet on the third floor that will be made available to the next tenant makes for “an even juicer store of 29,000 square feet.” Godiva and Devon & Blakely are the other retail tenants in the building. The Post speculates that SL Green and Mr. Sutton are looking to “buy out the two other shops and install higher-paying tenants.”
Fifth & Pacific, which currently owns Juicy, is working to sell the line to Authentic Brands for $195 million. Juicy opened its Fifth Avenue flagship in 2008.