Coach Sheds Real Estate As Sales Plummet
Faced with a 19% sales drop in North America, Coach is closing stores and reportedly rethinking its ownership stake in 10 Hudson Yards (above) on Manhattan's Far West Side. The fashion company became the first anchor in the Related Companies- and Oxford Properties-owned tower when it bought 738K SF of office space there. The new retail woes—reported late last month—may lead Coach to lease it all back. On top of that, the leather purveyor is shuttering 70 stores—that's 20% of its North American locations—in light of the disappointing sales figures. Related has already agreed to buy Coach's current HQ at 516 W. 34th Street and build a new skyscraper.
The story follows last week's news that JPMorgan had ditched plans for a $6.5B HQ in the Hudson Yards development.