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