After 77 years of doing business in this neighborhood, Gabay's Outlet has closed on Avenue A between 12th Street and 13th Street.
The designer discount store closed for good at the end of the year.
Third-generation owner Joseph Gabay shared this announcement via Facebook on Dec. 29:
It is with lots of emotion that I am announcing the closing of Gabay's Outlet. We are a third-generation business that has been operating in the east village for well over 50 yrs. I would like to pay tribute to my grandfather who started selling out of a pushcart on the street, my father and myself for lasting through the test of time. It's plain and simple, we are closing because our business model does not work in today's society. Amazon has had a huge impact and made it impossible to compete. THE GOOD NEWS is we have be blessed with some good fortune that will allow me many new opportunities. The future has never been brighter for myself and my family. We had a great run! So far!
The Gabay family owns the assemblage of buildings on the northeast corner of Third Avenue and St. Mark's Place that will reportedly yield to a 7-story office building. The 99-year leasehold for the properties was reported to be a little more than $150 million.
Gabay's grandfather Sam, a Turkish immigrant, began selling extras from garment factory floors in a pushcart on the Lower East Side in the 1920s. He eventually opened his own shop at 1 St. Mark's Place in 1940, one of several locations the store would call home in a 10-block radius before settling in at 225 First Ave. in 1970. A rent increase forced Gabay's to move from First Avenue to Avenue A in 2014.
Previously on EV Grieve:
After 45 years on 1st Avenue, Gabay's Outlet is on the move
Report: NE corner of St. Mark's Place and 3rd Avenue will yield to a 7-story office building
"THE GOOD NEWS is we have be blessed with some good fortune that will allow me many new opportunities" + "Real Estate Equities Corporation is planning to demolish the existing low-rise buildings at 3 St. Mark’s Place, 23,25 and 27 Third Avenue to make way for a 7-story, 66,000-square-foot office building...REEC picked up the 99-year lease for the properties for a little more than $150 million...Joseph Gabay, whose family owns the properties..." - yeah, just great for you and your "new opportunities", honey. For us, who will have to deal with yet more demolition, construction of another hideous soulless box, and even more corporate yobs in the neighborhood, along with the kind of bland chain businesses they attract, not so much.
ReplyDeleteOkay fellow citizens of this end of Ave A, keep alert for an indication that this space may turn into another fucking bar, the last thing we need here. In case that happens I strongly suggest you attend that CB3 meeting to let your voices heard against any possibility of a new liquor license on that block.
ReplyDeleteI think upper Avenue A is already considered a saturated zone in community board A and would not be easy to approve another bar. Of course, the SLA can override any recommendation.
Delete10:59
ReplyDeleteI think your comments are way out of line. Just too nasty and selfish. They have been members of the hood gong back to the 20s and have invested in the community with their retail outlets. They have a right when opportunity comes along, to profit from it.
SOrry Gojira...Its HIS PROPERTY.
ReplyDeleteto Gojira:
ReplyDeleteThe Gabay family has spent almost 90 years on the LES providing a great service for the community. It's very telling that you throw any shade at this family for "cashing out". You certainly don't sound jaded or bitter at all...
I thank the Gabay's for what they did for our hood and I hope they enjoy the windfall - god bless the LES!
What's piggy about it is the negative impact it is going to have on the community. And that there is nothing in the plan that will be beneficial or giving back to the community.
ReplyDeleteSo maybe one of you can explain to me the difference between what the Gabay family are doing - richly cashing out on the back of the neighborhood in a way that will contribute heavily to, and speed up, Astor Place's already massive shift into a corporate, commercial dead zone - while receiving much fuzzy warmth in return because of how long they've been in the neighborhood, yet when the Katz family (who've been around even longer than the Gabays) did exactly the same thing by selling their air rights to Ben Shaoul, they were almost universally excoriated for being disgusting, greedy pigs who didn't care about the EV/LES, with calls for boycotts. Where's the difference here? Cos I'm not seeing it.
ReplyDeleteGojira,
ReplyDeleteIt's their property. They have a right to do with it what they want... as long as it doesn't violate the law. And they don't have to answer to us.
That wasn't my question, cmarrtyy.
ReplyDeleteGood luck to the Gabay family. Really enjoyed your stores. Now that Gabay's, JAM and EV Cheese are gone guess I will just go and check in with Block Drug and Mosihes to be sure they are going to be around for a little while longer. Change is one thing. Neighborhoods being wiped out with a stultifying bland, high priced mall mentality taking over is another. Gllad I am old and experienced a very different way of life here. Trying not to be smug, just sad.
ReplyDeleteGlad you clarified your point, Gojira. Now I see that it is, in fact, a good one!
ReplyDeleteAmazon made it impossible to compete?
ReplyDeleteI remember Gabay's as a thick sea of schmattes where you went to fish for the best catch. We cannot compare apples and pears.
No need to say why you sold. After so many years of hard work, you deserve to do whatever you want and can.
You must have turned down loads of offers to sell. At one point, the time is right.
Who's next?
This is an outrageous amount of greed with no thanks. Yes a lot of things are legal but that doesn't mean that people stand for anything. The best is yet to come. For who?
ReplyDeleteThe issue is that they are leasing to a private developer who is going to attract more corporate types to the neighborhood. Why couldn't they sell or lease it to an affordable housing developer. Could have leased three parcels for affordable housing for 30,000 a month each which would equal 1.1 million a year in revenues.
ReplyDeleteIt's not so much that Katz sold their air rights, they have a right, it's who they sold it to.