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And then there was one. Crate & Barrel has negotiated an early exit from its lease at 650 Madison Avenue—an address they've occupied for more than 20 years—leaving it with just one New York City location, according to the Wall Street Journal. Though the home goods brand could have stayed at the corner of 59th Street until as late as 2020, its last day of business here will be Sunday, August 2nd.
"This was a difficult decision and we are grateful to our departing associates for their hard work and service," Crate & Barrel said in a statement released to the paper. "We remain well positioned to serve the New York market through our Soho store, as well as stores in the surrounding area and through our website."
Rising rents were the primary factor in this move, unsurprisingly. With stores on nearby Fifth Avenue commanding the highest retail rents in the world, Crate & Barrel wasn't looking forward to a price increase at its next lease negotiation. In a similar vein, the owners of 650 Madison Avenue see the exit as an opportunity to start commanding market rents on 62,000 of retail space even sooner, making as much as five times more than what they're currently receiving.
The company will lay off nearly 100 employees from this location, and reshuffle others internally. There are no plans to replace this location, leaving Crate & Barrel with just one store on the corner of Broadway and Houston, along with two CB2 sister stores.