Living That BOUNCE Life

Simon Property, the nation’s biggest mall operator, is suing the owner of Banana Republic, Gap, and Old Navy for not paying rent during the coronavirus pandemic. According to the New York Post,  a complaint filed in Delaware State court shows that the company owes $66 million in back rent and other charges related to its 412 stores around North America.

Back in April, Gap acknowledged in public filings that their total monthly lease obligations totaled about $115 million per month. The New York Post also says the brand “also acknowledged that it might not be able to negotiate rent deferrals or abatements and that any dispute under these leases may result in litigation with the respective landlord.”

In a call about closed stores in his malls, David Simon, Simon CEO, was quoted as saying, “The bottom line is, we do have a contract, and we do expect to get paid.”

This isn’t the only legal trouble that the Gap is dealing with. They are also being sued for not paying rent for stores in both Manhattan and Orange County, California.

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