February 2009

From the NY Times:

The latest record store to close in New York is a big one: the Virgin Megastore in Union Square. Following its announcement last month that the Times Square Megastore would close down in April, Virgin Entertainment Group North America will shut down the Union Square shop in late May or early June, a spokeswoman said, confirming a report in Billboard. Virgin will also close its Market Street store in San Francisco in April. The New York closures will leave Manhattan without a large-scale record store. Thousands of music retailers have shut down in recent years as CD sales have plunged, and Virgin has been closing most of its locations around the country since it was bought by the real estate companies Vornado and Related in 2007, but its high-traffic New York stores were said to be profitable.

The latest gossip from The Villager:

While the fate of two prime-time storefronts on the south side of Union Square has yet to be determined, recent whispers have indicated that more big-box stores could be headed for the space currently occupied by a pair of retail behemoths.

Electronics retailer Circuit City, which filed for bankruptcy late last year, will shutter its location on 14th St. at Fourth Ave. at the end of next month as part of plan to auction off all its properties and leases nationwide.

A sales associate at the store said that Walmart was interested in the space, which is owned by developer The Related Companies, although a New York-based spokesperson for Walmart said the big-box chain currently has no announced projects in the city.

Best Buy, which has a store less than a mile away on W. 23rd St., is another name that has been floated as a future tenant. A company spokesperson said the electronics-and-entertainment retailer does not currently have any plans for the site and could not speculate on potential deals.

Rumors have also swirled for months over the possible departure of the adjacent Virgin Megastore, where Related — which owns a controlling interest of the Virgin stores — is also the landlord.

“We’ve made no decision about that property,” Related spokesperson Joanna Rose told Mixed Use, echoing her statements to this paper from last May regarding Virgin’s long-speculated exit. However, Rose did confirm that brokerage Winick Realty Group continues to handle the leasing assignment for the nearly 60,000-square-foot property.

A spokesperson for the Union Square Partnership did not have any information on who could open in either space, where brokers have pegged asking prices for the marquee addresses at upward of $300 to $350 per square foot.

They’ve been under construction for ages, but it looks like the condos at 82 University Place, where the beloved Cedar Tavern used to be, are finally ready to be sold. Starting around 1.5 million.

After more than 15 years, the very first location of Crunch Fitness is closing on March 16. All members will be directed either to the new and much larger branch at 4th Ave. and 12th St. or the Lafayette St. branch.