Zara Faces Lawsuit

Zara (Arteixo, Spain) plans to close one of its New York stores later this year, a move that its landlord is fighting in a $15 million lawsuit.

The store at 750 Lexington Avenue is slated to close this September, but the building’s owner, International Plaza Associates (New York), says that closure would break its lease-extension agreement. According to Women’s Wear Daily, the company extended its lease in 2016 for five additional years but Zara claims the lease extension was never finalized and that it may not even close the store.

The uptown store was the retailer’s first store in New York, having opened there 30 years ago.