Zara Faces Lawsuit For Wanting To Close One Of Its Stores

2024 Author: Steven Freeman | [email protected]. Last modified: 2023-12-17 08:15

The store was the brand's first in New York City.

New York City is the home of Zara's first flagship store and therefore the establishment is one of the company's most special. The store, which first opened 30 years ago, is located at 750 Lexington Ave and later this year it could close its doors forever, as the company seeks to cut costs. However, this decision may cost you a few million.

According to a lawsuit filed in New York by the company that owns the building where the establishment is located, the chain of stores would have breached the established contract, which stipulates that it would end in another five years and not next September. as the company alleges. If it is proven that the clothing company reached an agreement to extend the contract and still decide to leave the premises, they would have to pay about 15 million.

Zara ensures that the contract extension was never finalized and that they can leave the building this year, if they so choose. Therefore, they want International Plaza Associates, owners of the building, to withdraw the demand as soon as possible.

The truth is that it would be a shame to close the iconic establishment and of course it would also be a reason of much headache for Zara since they would have to pay the sum that the owners of the building ask for in said demand.