U.S. News

Largest U.S. mall operator sues Gap for missed rent payments

By Clyde Hughes   |   June 4, 2020 at 11:34 AM
A pedestrian walks past a Gap Kids clothing store on 5th Avenue in New York City on April 19. File Photo by John Angelillo/UPI

June 4 (UPI) -- Simon Property Group, the largest mall operator in the United States, is suing clothing retailer Gap for $66 million for unpaid rent during the coronavirus pandemic.

The lawsuit, filed in Delaware state court, says back rent owed by Gap Inc. will continue to accrue each month, plus interest.

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Gap is already being sued by landlords in Manhattan and Southern California after it stopped paying rent in April.

There are more than 400 Gap-owned U.S. mall locations, making the retailer Simon's largest in-line rent tenant.

In an earnings call last month, Simon CEO David Simon said he will hold tenants accountable for rent they miss during coronavirus-related closures.

"The bottom line is, we do have a contract and we do expect to get paid," Simon said.

Simon and Gap have begun to reopen in recent weeks. Gap brands include Old Navy and Banana Republic.