Just 16 months ago, Neiman Marcus rolled out the red carpet to debut its 188,000 square-foot flagship store at Hudson Yards mall, the ambitious retail project on the west side of Manhattan. The location was a project touted for years as Neiman’s debut into Manhattan.
Now, the bankrupt retailer has confirmed it will exit the location as part of its Chapter 11 bankruptcy restructuring.
In court documents that detailed its lease plans on Thursday, Neiman Marcus said that, in addition to the New York City store, it would shut units in Bellevue, Washington; Palm Beach, Florida; and Fort Lauderdale, Florida.
It will also exit 17 Last Call outlet locations, according to the filing. More store closures could be on the way: Neiman Marcus is also marketing leases in Walnut Creek, California and in the Mazza Gallerie mall in Washington, D.C.
“We are always assessing our store footprint to ensure it is optimal to enhance revenues, overall profitability, and our integrated retail strategy,” a Neiman Marcus spokesman said. “These store closures will help ensure the continued long-term success of our business and underscores our unrelenting focus on providing unparalleled luxury experiences and engagement. A physical location in Hudson Yards is no longer an ideal space for us given the preponderance of restaurants and future office space in that mall.”
Hudson Yards, built by two of the world’s largest real estate developers — Related Companies and Oxford Properties Group — was temporarily forced to shutter as part of the lockdowns to curb the spread of Coronavirus. It was an especially hard blow considering the mall had just barely opened. It is still not fully reopened, but several tenants are offering curbside pickup.
Related is now on the hunt for alternative tenants to fill the space.