BERGDORF FEUD WITH LANDLORD SETTLED
NEW YORK — Settling a feud between Bergdorf Goodman and its landlord, a state court judge ruled Tuesday that the store did not break its lease agreement by moving mail order and telephone sales operations to Texas.
Bergdorf’s landlord, 754 Fifth Avenue Associates, filed suit against The Neiman Marcus Group, which operates Bergdorf’s, charging the rent agreement prohibited the company from moving any operations. The agreement calls for annual payments of $6.5 million, plus a percentage of sales above a certain level. In a 22-page decision, however, Justice Ira Grammerman said that there is no specific language barring Bergdorf’s from moving its telephone and mail order operations to Las Colinas, Tex.
A spokesman for NMG said the decision to move Bergdorf’s telephone and mail order division to the Dallas suburb “made economic sense” because the company has a “very sophisticated marketing facility” in Las Colinas.