The Oak Room May Close in July

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As if Charlie Sheen and reportedly shoddy condo construction weren't bad enough, the Plaza Hotel is once again in the news for the wrong reasons.

Three days after the news broke that its operators were being sued by the hotel for sullying the Oak Room and Bar's esteemed history, the Times reports that the once-vaunted establishment may close at the end of July.

It turns out that after negotiations with the hotel broke down in March, Eli Gindi, one of the Oak Room's owners, dropped his plans to turn the troubled restaurant into a steakhouse and filed a 90-day notice of departure. One of the hotel's biggest points of contention in its $33.3 million lawsuit was the Oak Room's Day and Night parties, which drew large crowds of rich and often inebriated young people and could bring in as much as $180,000 in an afternoon. Gindi's initial rent, incidentally, was $125,000 per month, but he negotiated it down to $50,000 after the recession hit.

Gindi has argued that he needed the parties to stay in business (especially after the arrival of Todd English's Plaza Food Hall last year). Apparently the Gossip Girl tours and Mel Gibson cocktails weren't much help, either.


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