Barneys New York’s future at its Madison Avenue flagship is up in the air seeing as the retail giant is not being able to come to an agreement with its landlord over rent, the New York Post reports.
Now the fate of the store at 660 Madison Avenue will most likely be determined by an arbitrator, who has been brought in to resolve the dispute between the two warring parties.
Barneys’ lease expires in 2019, and the owner of the property, Ashkenazy Acquisition, wants to up the rent. The two sides have not been able to agree on what constitutes fair market rent at the property, and despite months of negotiations, they haven’t been able to come to an agreement.
At present, Barneys pays $20 million per year to rent the nine-story building at Madison Avenue and East 61st Street. An arbitrator will now decide between two different rent amounts put forward by Barneys and the owners, respectively.
It’s possible that Barneys will decide to decamp from its Madison Avenue location if the arbitrators sides with the owner, according to the Post. The Madison Avenue store accounts for a third of the chain’s revenue, so being forced to move will certainly come as a heavy blow. The arbitrator is expected to make a ruling in a few months.