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Iconic Oak Room to Close After Court Fight, Report Says

The Oak Room is the target of a lawsuit claiming its parties have tarnished its reputation.
The Oak Room is the target of a lawsuit claiming its parties have tarnished its reputation.
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By Adam Nichols

DNAinfo News Editor

MANHATTAN — A rent fight between the Plaza Hotel and the operators of the Oak Room is forcing the iconic restaurant to close, the New York Times reported.

Eli Gindi, who owns the Oak Room, which includes the famous turn-of-the-century Oak Bar, told the newspaper lease negotiations with the hotel broke down in March.

He said the hotel was trying to double his $50,000-a-month rent.

According to papers filed with the State Department of Labor and seen by the Times, the closing date is listed as July 31, the newspaper said.

The Plaza's owners have also sued the Oak Room for $33.3 million, citing "numerous violations of the lease, unacceptable activities and significant financial arrears."

Gindi told the Times the fight revolves around the Oak Room's "Day and Night" parties held on Saturday afternoons. They apparently upset the Plaza's residential tenants, he said.

Gindi said the parties could bring in as much as $180,000 in a single afternoon.

Legal papers claim the frequent parties, combined with poor health and safety records and $900,000 owed in back rent, had a "corrosive effect on the Plaza Hotel/Oak Room " brand, the Times reported.