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Rent Disagreement Could Close World Famous Carnegie Deli, Say Owners

By DNAinfo Staff on January 23, 2011 3:44pm  | Updated on January 23, 2011 3:43pm

Owners of the Carnegie Deli claim in a new suit that their neighbor's withdrawal from negotiations regarding the use of part of their property could lead them to close down the restaurant.
Owners of the Carnegie Deli claim in a new suit that their neighbor's withdrawal from negotiations regarding the use of part of their property could lead them to close down the restaurant.
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Flickr/ Scott Beale

By Gabriela Resto-Montero

DNAinfo Reporter/Producer

MIDTOWN — A lawsuit filed by the owners of the Carnegie Deli claims the legendary eatery could close down after negotiations to use part of a neighboring building stalled, the New York Post reported.

Woodward Affiliates, the property owners next door to the deli at 854 Seventh Avenue at West 55th Street, had a longstanding agreement with Carnegie Deli allowing the restaurant to use part of its property for $2,500 a month, the Post reported.

However, the firm scrapped the agreement with restaurant owners recently while the two sides were  working out a new contract, the suit filed in Manhattan Supreme Court claims, according to the Post.

Without the extra space, which adds 200 seats and a legally-required second exit for Carnegie Deli, the restaurant may be forced to close, owners said.

Ultimately, the Department of Buildings will have to approve any agreement between the deli and the property owners, the paper reported.