Coach is Suing Former Creative Director Reed Krakoff Over NY Stores

Coach’s longtime creative director, Reed Krakoff, may no longer be at the helm of the struggling brand, but the two certainly have a few unresolved issues and are set to battle it out in court. New York-based Coach has filed suit against its former creative director, Reed Krakoff, whose eponymous label it owned until 2013. The recent scuffle arises from Coach’s allegations that Krakoff has failed to pay rent for two retail spaces that he subleased from Coach for his eponymous label – one on the Upper East Side and another in the upstate Woodbury Commons outlet mall.

According to Coach’s complaint, which was filed on Friday in New York Supreme Court, Krakoff has breached its sublease agreement since the brand announced it would undergo a restructuring plan. The Reed Krakoff brand announced in March that it had "suspended all design and production" while it looks for an investor, but is continuing to operate its Soho and Woodbury Commons stores, as well as the reedkrakoff.com e-commerce site.

Reed Krakoff opened the stores at issue, one located at 831 Madison Avenue and another at the Woodbury Commons outlet mall, when the brand was still under Coach’s control. Following its reported restructuring efforts, Krakoff’s company closed the Madison Avenue outpost and stopped making rent payments for both stores in August according to Coach’s lawsuit. As a result, Coach is seeking damages of upwards of $1 million in unpaid rent and taxes.