Free People Sheds $6 Million Damages Ruling in NYC Rental Row

Women’s clothing chain Free People, a subsidiary of Urban Outfitters, was entitled to not pay rent at one of its New York City stores for three months during the Covid-19 pandemic, the Second Circuit ruled Tuesday.

The decision reverses a lower court order awarding more than $6.7 million in damages to the landlord of the store that was located on the border of Manhattan’s Chelsea neighborhood and the Meatpacking District. New York’s emergency orders prevented Free People of PA LLC from operating its business from March to June 2020, triggering the lease’s takings provision and excusing the retailer from ...