PHILOSOPHY OUT IN N.Y.: Aeffe USA is shutting the doors of its Philosophy di Alberta Ferretti boutique in New York. The company accepted Ferrim USA’s proposal Wednesday to prematurely break the lease the fashion company had at 452 West Broadway.

Aeffe USA is the property of Aeffe SpA, a company listed on the Italian Stock Exchange that controls the Moschino, Alberta Ferretti and Pollini brands, and produces and distributes collections for brands including Emanuel Ungaro and Cédric Charlier.

This story first appeared in the December 23, 2013 issue of WWD. Subscribe Today.

Ferrim USA — which is indirectly owned by Aeffe SpA through relevant shareholders — has agreed to pay Aeffe $3 million by Jan. 15 for breaking the lease, which was valid for another eight years and nine months and cost $100,000 annually in rent.

“The activity carried out within the premises has generated losses, and its continuation in the same store would have also required important costs and significant investments in order to comply with the new brand’s layout,” according to Aeffe’s board.