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NEW YORK – Valentino SpA was sued on Friday for $ 207.1 million by the owner of its former flagship on Fifth Avenue in Manhattan, who said the Italian fashion company had no right to terminate the contract and leave the shop in ruins.
The complaint followed the dismissal of a judge on January 27 of Valentino’s own lawsuit seeking to annul his 16-year lease because the coronavirus pandemic had made it impossible to operate the store, two blocks south of Trump Tower.
AMAZON, VALENTINO PARTNER FOR COUNTERFEIT
According to the owner, 693 Fifth Owner LLC, Valentino owes all the rent due until the contract expires in July 2029, despite leaving the store in December.
Valentino is also expected to pay $ 12.9 million to repair the store’s damage, including Venetian Terrazzo marble panels now defaced with paint and holes, the owner said.
Neither Valentino nor his lawyers responded immediately to requests for comment. The lawsuit was filed at the Manhattan Supreme Court, a New York state court.
In an attempt to end her rent, Valentino said the pandemic left her unable to operate the store “consistent with her neighborhood’s reputation for luxury, prestige and high quality”.
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But in rejecting Valentino’s lawsuit, Manhattan court judge Andrew Borrok said the lease gave the owner ample protection against nonpayment of the rent.
“The fact that the COVID 19 pandemic was not specifically listed by the parties does not alter the outcome,” he wrote.
Valentino is appealing Borrok’s decision.
Manhattan retailers struggled during the pandemic with reduced traffic from tourists and office workers and forced store closures.
Last month, the Real Estate Board of New York said rents sought for Manhattan’s retail space fell across the district, including an 8% drop in the stretch including Valentino’s store.
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“The owner of the building tried to work with Valentino during the pandemic with the understanding that these are difficult times,” said the owner’s lawyer, Robert Cyruli. “We are looking forward to presenting our case for damages in court.”