The New York Post reports that Coach is second-guessing its plans for moving to the Hudson Yards megaproject because of financial troubles. The retailer's sales dropped 19 percent across North America in October, and the company plans to close 70 stores (one-fifth of its locations) on the continent. The deal to move to Hudson Yards was first talked about four years ago, and Coach signed a deal with developer Related Companies in 2011. Coach agreed to sell its current headquarters at 516 West 34th Street to Related, and purchase 740,000 square feet of office space in 10 Hudson Yards. The deal has closed, and Coach is already the owner of the space, so this doesn't mean that Coach could back out of the move altogether. Instead, Coach is now considering selling the space in Hudson Yards and leasing it back. Construction of the tower is progressing steadily, and it's currently on track for a late 2015 opening.
UPDATE: A representative from Related says, "Coach has closed on their office space and is fully committed to moving to Hudson Yards." In other words, Coach will still be occupying 10 Hudson Yards, but the company may be rethinking how exactly they want to do that. Will they continue to own it? Or will they sell it to a new owner and become a tenant? TBD.
· Coach's financial woes put Hudson Yards move at risk [NYP]
· All 10 Hudson Yards coverage [Curbed]
· All Coach coverage [Curbed]
· The Definitive Guide to the Hudson Yards Development Boom [Curbed]