NEW YORK — Kate Spade & Co. has surrendered the lease of the former Juicy Couture flagship at 650 Fifth Avenue here and received $45.8 million from the building’s landlord in addition to $5 million paid earlier.
Payment was made by the landlord of the building, a joint venture between Jeff Sutton’s Wharton Properties and SL Green Realty, the company said in a Securities and Exchange Commission filing.
Kate Spade’s predecessor company, Fifth & Pacific Cos. Inc., sold the intellectual property of Juicy to Authentic Brands Group Inc. for $195 million in cash in November. It had weighed the possibility of converting the 17,000-square-foot store, which included two selling floors and a basement, to a Kate Spade unit before proceeding with the termination.
Kate Spade & Co. has a licensing agreement for Juicy with Authentic through the first half of the current year.
The landlords acquired the leasehold rights to the retail space in the building late last year. In March, a Manhattan federal judge ruled that the Iranian interests that own the building must forfeit it to victims of the Sept. 11, 2001, terror attacks and other terrorist action in which Iran is believed to have played a role.