REI is pulling the plug on its SoHo flagship this July, and about 72 employees at the store are expected to lose their jobs, according to a new report. The closure wipes out the co-op's only Manhattan retail outpost in a neighborhood where the store has anchored the Puck Building since 2011. Workers and union advocates say the sped-up timeline is already fueling questions about transfers, severance and what happens to in-store services.
Closing date and layoffs
According to Crain's New York Business, REI informed staff that the SoHo location will close in July and that roughly 72 roles tied to the store will be eliminated. The report, by C.J. Hughes, identifies the Puck Building site as the affected location and notes that REI has started notifying employees and local officials about the fallout.
Timeline pulled forward
When REI first announced that its SoHo and Boston stores would close, it described the move as a late 2026 shutdown, coverage that appeared in outlets such as Gothamist. The newer Crain's reporting indicates that the SoHo schedule has been pulled forward, a shift that could tighten the window for internal transfers and severance talks that many expected to stretch through the end of 2026.
Union history and worker fallout
The SoHo store is one of several REI locations that have unionized in recent years and has been the site of strikes and labor complaints tied to contract negotiations, as documented by The Nation and local labor reporters. Union leaders told reporters they are pressing REI for specifics on transfer options, recall rights and any severance packages for employees who are out of a job once the store closes. Advocates note that earlier actions at the store highlighted concerns about safety, scheduling and pay, issues they say will be central as the shutdown proceeds.
Company context
REI has been trimming operations this year, including winding down its Experiences business and rolling out changes to pay and benefits that take effect July 1, moves reported by Bloomberg. Executives have described those steps as part of a broader restructuring effort to deal with softer sales and thinner margins, and the SoHo closure appears to fit as a real-estate piece of that strategy. The backdrop helps explain why the co-op is shedding large, high-cost urban locations even as it tries to hold on to service offerings in other markets.
For shoppers, losing the SoHo flagship means one less local big-box spot to gear up for the outdoors. For staff, the accelerated timeline shortens what many thought would be a long glide path into 2026. REI's store page still lists the SoHo location and its in-store shops and services, according to REI. This story will be updated as REI or the union issues formal statements.
