As Revlon goes through a massive company makeover in the form of bankruptcy proceedings, the company secured its requested exit from 200 Park Avenue South.
Thecosmetics company received approval from a judge to exit a pair of leases at ABS Partners’ Everett Building, Crain’s reported. The two leases encompass nearly 46,000 square feet.
Revlon asked to leave the leases a couple of months ago as part of Chapter 11 bankruptcy proceedings. Corporate restructuring officer Robert Caruso said the lease terminations could save the company $17 million.
One of the leases belongs to cosmetics brand Elizabeth Arden, a subsidiary of Revlon. The company operated a 10,000-square-foot ground floor spa, which is leased through April 2023. The spa has closed, however, and the retail space is being offered for lease.
Meanwhile, Elizabeth Arden’s office space in the building spanned nearly 36,000 square feet on the sixth and seventh floors. That lease wasn’t slated to expire until October 2027.
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Representatives for ABS did not respond to a request for comment from the outlet.
When Revlon entered bankruptcy, it counted $2.3 billion in assets and $3.3 billion in debt. In the last two years, the company has lost more than $800 million.
Revlon has another significant lease worth monitoring.
The company is locked into a 108,000-square-foot lease for its headquarters at Brookfield Properties’ One New York Plaza in the Financial District. Revlon has not given any public indication of plans to bail on the lease, which runs through 2030; Brookfield declined to comment to Crain’s about the possibility of Revlon leaving.
Revlon is one of the major tenants at Brookfield’s property, which hit the market several months ago. Brookfield and China Investment Corporation have been looking to sell the 50-story office building, previously valued at $1.4 billion. The 2.7 million-square-foot building was 93 percent leased as of April.
— Holden Walter-Warner