Simon Property Group sues tenant for not paying rent
"Gap is being sued for refusing to pay rent for stores temporarily closed during the coronavirus pandemic.
Mall owner Simon Property Group said in a lawsuit filed this week that the clothing retailer owes three months of rent, totaling $65.9 million. Gap has more than 390 stores at Indianapolis-based Simon's malls, including its namesake brand, Old Navy and Banana Republic.
Simon, the nation's largest mall operator, temporarily shuttered all its properties in March after retail anchors at the locations such as Gap, Macy's and Nodstrom's closed their doors. Simon began reopening malls last month as states started easing restrictions on businesses in an effort to kickstart economic growth.
Gap and other major retailers, including sneaker seller Foot Locker, have said they wouldn't pay rent for stores that were forced to close due to the pandemic. In April, Gap warned that it may be sued by its landlords and that a dispute could be costly and have "an uncertain outcome."
This may have major ramifications for ASNA and its precarious cash position.
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