“Neiman’s wants out. Hudson Yards wants them out. They are figuring out an exit agreement,” said one source.
The Neiman Marcus Group, which filed Chapter 11 bankruptcy on May 7, has not made any disclosure regarding its 188,000-square-foot store in Hudson Yards, but it is believed to be on the list of locations that management is considering closing. Chapter 11 enables retailers to get out of leases without penalty.
Related Companies, a codeveloper of Hudson Yards, and Facebook had no comment on the Neiman’s space.
Converting Neiman’s into office space, rather than another retailer, would be very beneficial for Hudson Yards by bringing hundreds of additional office workers into the complex who could support the stores and restaurants there.
Facebook has already leased more than 1.5 million square feet of office space across 30 floors and three buildings at Hudson Yards. At 30 Hudson Yards, site of Neiman’s and The Shops & Restaurants at Hudson Yards mall, Facebook occupies 265,000 square feet. At 50 Hudson Yards, which is scheduled to open in 2022, Facebook took 1.2 million square feet, and at 55 Hudson Yards, Facebook has 57,000 square feet.
Neiman’s opened as the anchor retailer of Hudson Yards in March 2019. The decision to open a big store in Hudson Yards was controversial, raising questions about whether a city already filled with luxury stores needed another one, and whether tourists and people living and working in the city would shop the new Neiman’s and other stores in the mall, considering it’s situated on the far West Side of Manhattan, in an area that was devoid of retailing. Being situated on floors five through seven added to the controversy, though Neiman’s was given very favorable lease terms as well as unobstructed floor plates, high ceilings, windows, a concierge and express elevators in return for taking the upper floors. Neiman’s executives, long before opening in Manhattan, knew Hudson Yards would be a gamble.