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NIke, Trump Huddle Over Nike Space

NEW YORK -- Nike is still pursuing the Galeries Lafayette space in Trump Tower, and Galeries still insists it isn't going anywhere.<BR><BR>Sources said Monday that Nike is talking with Donald Trump and that Galeries might buy its way out of the lease...

NEW YORK — Nike is still pursuing the Galeries Lafayette space in Trump Tower, and Galeries still insists it isn’t going anywhere.

Sources said Monday that Nike is talking with Donald Trump and that Galeries might buy its way out of the lease since it cannot sublet without Trump’s permission.

That, however, was denied by George Graf, president of the 57th Street store, the only Galeries Lafayette unit in the U.S.

“It’s not true,” he said Monday.

Meanwhile, a Nike spokeswoman in New York said the company had approached Galeries, but the talks led nowhere.

“Galeries is currently in the space, and we are very happy with them as tenants,” Trump said Monday.

However, he continued, Nike has a reputation for being “one of the great tenants in the world.”

He would not comment on any reported talks.

Another Nike official said his firm is continuing to scout the area around 57th Street and is considering a number of locations.

Last month, Galeries officials denied reports that the store was giving up its space in Trump Tower.

Business has been tough since the store opened in September 1991, but Graf said transactions have increased 4 percent this spring and that traffic is up.

The store pays $8 million in total rent, including real estate taxes, sources said.