RFR Sues Club Monaco Over Unpaid Rent In Flatiron Store

8 minutes read

RFR Holding slapped Club Monaco with a lawsuit after the high-end clothing retailer allegedly ghosted the landlord on more than $800,000 in rent.

The Canadian brand vacated its sprawling storefront at 160 Fifth Avenue on July 31, but left behind a hefty unpaid tab, a new lawsuit alleges. RFR is demanding $1 million in base rent, deferred rent, and additional charges, according to the suit filed in state Supreme Court. The landlord is also seeking $25,000 in legal fees.

RFR says Club Monaco stopped paying rent in the lead-up to its exit — despite multiple amendments to the lease dating back to 1989 and a recent seventh amendment inked as recently as January. RFR served a Notice of Default to the store manager in June, but that didn’t seem to move the needle, the complaint says.

Club Monaco’s owner, private equity firm Regent, L.P. did not immediately respond to requests for comment. An RFR spokesperson declined to comment.

The once-buzzy fashion brand, known for its minimalist luxe aesthetic, has been retreating from brick-and-mortar retail in recent years. Regent, L.P. bought the brand from Ralph Lauren Corporation in 2021 and spent the next year stabilizing the business, chief merchandising officer Courtney O’Connor told Women’s Wear Daily last year.

The company closed its Vancouver flagship and several other locations, according to news reports. Club Monaco is being sued by the owners of Westfield Valley Fair Mall for allegedly failing to pay rent for nine months there, according to the Silicon Valley Business Journal.

RFR sold the office portion of 160 Fifth Avenue to nonprofit Simons Foundation for $185 million in 2018 but retained the retail condo. The 19,000-square-foot space is being marketed for lease by a Retail by MONA team led by Brandon Singer. The New York Post reported in January that the asking rent is $450 per square foot.