Barneys Fighting With Landlord Over UES Flagship, Report Says

UPPER EAST SIDE, NY — Barneys New York's flagship store on Madison Avenue is in limbo as the retailer and its landlord struggle to compromise on a lease extension, according to reports.

After six months of negotiations, an arbitrator will either take side with Barneys or its landlord Ashkenazy Acquisition in a fight to extend the retailer's lease at its 660 Madison Avenue flagship, the New York Post first reported. The arbitrator is expected to make their decision within a matter of months, the Post reported.

Barneys and Ashkenazy Acquisition have been debating for months on what's considered fair market rent for the 275,000-square-foot flagship on Madison Avenue between East 60th and 61st streets, the Post reported. The retailer currently pays about $20 million per year in rent and may have to move if the arbitrator sides with Ashkenazy, the Post reported.

"Over the past six months, they haven’t been able to reach a compromise," a source close to the negotiations told the New York Post. "This is a high-stakes situation for both parties."

Read the New York Post's full article here.

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