June 4, 2020

Simon Property Group Sues Gap For Rent On Coronavirus-Shuttered Stores

FILE - This Aug. 23, 2018, file photo shows a window display at a Gap Kids clothing store in Winter Park, Florida. Gap is being sued for refusing to pay rent for stores temporarily closed during the coronavirus pandemic.  - AP Photo/John Raoux, File

FILE - This Aug. 23, 2018, file photo shows a window display at a Gap Kids clothing store in Winter Park, Florida. Gap is being sued for refusing to pay rent for stores temporarily closed during the coronavirus pandemic.

AP Photo/John Raoux, File
JOSEPH PISANI - AP Retail Writer

NEW YORK (AP) — 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 Inc. has more than 390 stores at Indianapolis-based Simon's malls, including its namesake brand, Old Navy and Banana Republic.

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.”

San Francisco-based Gap did not respond to a request for comment Thursday.

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