Update – Breaking Business
In another sign of the stress faced by retailers. Gap, Inc. is facing potential legal action after the retailer failed to pay rent on one of its Manhattan stores for the months of April and May.
The landlord of the Gap store at 1212 Avenue of the Americas says the apparel giant failed to pay rent for April and May, along with water charges and snow removal, leaving the company with an unpaid bill of $530,334.
Gap is one of numerous retailers to have faced financial downturns as the ongoing coronavirus crisis forces many stores to shutter.
The company, which also owns brands such as Banana Republic and Old Navy, expected its cash holdings to drop from $1.7 billion USD to as low as $750 million USD by the conclusion of the financial quarter ending on May 2, 2020.
In addition to back rent, Gap’s landlord, 48th Americas LLC, is asking for attorneys fees of at least $20,000.
The suit was filed Monday in federal court in Manhattan.
GAP COVID-19 LAW-SUED MANHATTAN