Related seeks $7.5M unpaid rent during Covid at Shops at Columbus Circle, Hugo Boss responds

By Adam Pincus

Related Companies filed lawsuits last week against six tenants at its Shops at Columbus Circle mall in Manhattan, including Hugo Boss and Michael Kors, seeking at total of $7.5 million in unpaid rent and other charges that were not paid after the start of the Covid pandemic.

Related filed the lawsuits on Thursday and Friday last week in New York State Supreme Court. One of the tenants, Hugo Boss, responded with its own suit against Related seeking the termination of the lease or a restructuring of the rent.

Related sued six tenants including Hugo Boss for $4.2 million,  The Running Specialty Group for $1.05 million, Cole Haan for $920,813, Michael Kors for $774,880, Tumi Stores for $241,003 and another store for $291,439. Related filed the legal actions through its company A/R Retail, LLC.

Most of the tenants stopped paying rent in April, though some stopped in May. On March 20, 2020, Governor Andrew Cuomo signed an executive order halting non-essential commerce, including most retail stores. Much of those restrictions have been in part lifted for retail stores, but many locations remain hard-hit and in turn landlords are struggling because they have not received rent from some tenants.

Hugo Boss, which filed its suit late Friday, sought to have its lease terminated or “reformed.”

“Alternatively… a judgment reforming the Lease to reflect the Parties’ true intent that Plaintiffs have no obligation to pay rent once Plaintiff was deprived of the use of the Premises and that the Lease would terminate automatically when Plaintiff was deprived of its use of the Premises as originally contemplated by the Lease,” tbe suit said.