Gabay's Outlet has closed on Avenue A

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

Checkers headed to 1st Avenue

[EVG photo from July]

Higher rents forced longtime tenant Gabay's Outlet to leave First Avenue for a new home at 195 Avenue A earlier this summer.

Work permits at the old storefront at 225 First Ave. between East 13th Street and East 14th Street reveal the new tenant — a Checkers.



In April 2013, Crain's reported that the fast-food chain was going to add another 22 restaurants in NYC by 2015.

A Checkers opened in Tribeca in 2009. There's also a location in Hamilton Heights.

Here's the official Checkers story via the company website:

Checkers & Rally's restaurants were born out of the idea that a bland and flavorless burger was downright bad and that Americans everywhere deserved a better tasting burger — one that was unexpectedly bold, made-to-order and priced at a value that was hard to beat. Founded by experienced foodies with a renegade spirit, both the Checkers & Rally's unique double drive-thru concept, with its over-the-top checkerboard squares, chrome styling, red neon signs and of course the food, was an instant hit. These two new burger experiences were hot, fresh and served with a smile. People were hooked, and the world of cookie cutter corporate burger establishments was about to change.

Arlene Spiegel, a restaurant consultant, said this to Crain's about Checkers:

"I see them filling the space between quick-service-restaurants like McDonald's and gourmet burger concepts," said Ms. Spiegel. But she cautioned that it may be difficult for a suburban drive-thru concept to adapt to an urban market.

Previously on EV Grieve:
After 45 years on 1st Avenue, Gabay's Outlet is on the move

Gabay's Outlet settling into new Avenue A home

After 45 years at 225 First Ave., Gabay's Outlet moved earlier this month to 195 Avenue A near East 12th Street.



We checked in with proprietor Joey Gabay, the third generation of the family to run the business, to see how they were settling in their new home.

"We are still in liquidation mode of all of our excess inventory," said Gabay, noting that they are selling designer items at $10 a hanger. "Once the store is empty we will renovate to make a great designer boutique outlet. We are really looking forward to the fall when we will be able to put our best foot forward."

Gabay's first opened in the neighborhood at 1 St. Mark's Place in 1940. Increased rents forced them to move away from First Avenue.

As Gabay told us last month: "We are thrilled that we are staying in the East Village."

Previously on EV Grieve:
After 45 years on 1st Avenue, Gabay's Outlet is on the move

After 45 years on 1st Avenue, Gabay's Outlet is on the move

[Photo by Jena Cumbo via Time Out]

After 45 years at 225 First Ave., Gabay's Outlet, the designer discount store, is moving July 1 to 195 Avenue A.

There is a familiar reason behind the move.

"We just couldn't hang with the rents," proprietor Joseph Gabay told us on the phone. "We were concerned that we wouldn't even be able to find another space."

The new rent at 195 Avenue A, previously the Spin Hair Salon, is roughly half of what the going rate will be at 225 First Ave. between East 13th Street and East 14th Street.

"We are going to continue for at least another 10 years," said Gabay, the third generation of the family to run the store.

His 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.

"We are thrilled that we are staying in the East Village," Gabay said.