Mall owner Simon Property Group is suing Gap Inc. for allegedly failing to pay more than $65.9 million in rent and other charges, according to a lawsuit filed Tuesday.
San Francisco-based Gap, whose brands include Old Navy and Banana Republic, said in an April filing that it would not pay rent on stores closed because of the pandemic.
But in the lawsuit, Simon Property Group accuses the company of being in contractual default for failing to pay rent for April, May and June.
“The amounts due will continue to accrue each month, with interest,” according to the lawsuit.
Gap Inc. told NBC News that it has made progress with many landlords as it reopens stores across the country.
“We remain committed to working directly with our landlords on mutually agreeable solutions and fair rent terms, just as our hundreds of industry and government partners have sat with us in good faith to shape the post COVID business landscape,” the company said.
Source: NBC News