Reed Krakoff closing NYC boutiques

It was the news that shocked the fashion industry last March when Reed Krakoff announced he would be suspending his label entirely. Now, the reality of the situation is coming full frontal as Krakoff prepares to close his NYC boutiques. When the news of Krakoff suspending his label was first announced it was made clear that no liquidation sales would occur, and the brand would continue to operate on a typical retail schedule throughout summer.

Often, things don't work out as planned, however. Krakoff's newly minted boutique at 93 Greene Street in Soho which opened just 4 months ago seems to have already ceased operation, with a sign on the window saying "Due to inventory, Reed Krakoff SoHo will be closed today." Sources say that the boutique has actually been closed for several weeks now, but a representative for Reed Krakoff was not available for immediate contact to confirm or deny this. The stores lights still appear to be on, and there are bags on the shelves, however.

Krakoff shutters NYC boutiques

The future of Reed Krakoff has been hanging in the air, and it is still unclear as to why they shuttered operations in the first place. Carter Management, Reed Krakoff's leasing company for their Soho location, confirmed that they have in fact closed up the shop, but, they are still in compliance with the lease. Krakoff is currently seeking to sublet the 2700 square foot space with the help of commercial realtor Joel Isaacs of Isaacs and Company.

The location has a very lengthy nine years left on its term, but according to Isaac many luxury and contemporary brands are interested in the retail space. While the Soho location seems to be history, Krakoff's Upper East Side boutique seems to be holding out on closing for another week and a half according to the boutiques sales associates. Markdowns are currently at 70 percent off.

While an official close date for the location has not been set, Myles Lowell, Krakoff's Upper East Side Landlord, has said that there are several years left on the lease, but he doesn't know what will happen to the space after Reed Krakoff's closure. Isaacs has stated he is not working on subletting that space.

It's a sad day for Reed Krakoff indeed, and an even bigger surprise for the fashion industry that he will be pulling out the fashion scene earlier than hoped. The future of his company remains fairly unclear. Perhaps he might find a way to make a comeback, but, for now, it is the perfect time to get that discount Reed Krakoff handbag.

photo: The New York Post