Steve Roth’s Vornado Realty Trust is suing the Milan-based designer store Krizia S.p.A. for $343,333.33, plus interest and potentially more, for vacating its space at 769 Madison Avenue before its lease expired and for failing to pay rent.
The lawsuit, filed in state Supreme Court on June 11, alleges that Krizia chose to extend its $1 million annual lease, which was set to expire on March 31, 2009, for another five years—but then did not show up for a meeting to discuss the extension. Krizia claims it never extended its lease.
But Krizia did not pay up for the month of March either. Then it vacated the space on March 31, and failed to repair the holes in the exterior facade where it had left a sign, according to the lawsuit.
On May 1, Vornado sent a notice to Krizia saying they had canceled the lease. But Krizia has yet to relinquish the keys to 769 Madison Avenue or otherwise give up legal possession of the storefront, according to the summons and complaint. Vornado alleges that Krizia did not pay rent for the months of March, April, May, and June—in addition to all additional rent due for the lease. According to the lawsuit, Krizia has now moved to 805 Madison Avenue.
It is unclear when the Italian designer store will come to court. Will Krizia’s founder and designer Mariuccia Mandelli and her husband, Aldo Pinto, fly from Milan to Manhattan to face down Vornado—in stylish clothes? (Krizia could not be reached for comment through its New York store or its Milan offices.)