Skip to main content
BoF Logo

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.

Brookfield Sues Gap Over $2 Million in Missed Rent Payments

The shopping mall landlord is the second major group to sue the apparel retailer on overdue payments.
Gap美国门店 | 图片来源:Shutterstock
By
  • Bloomberg

SAN FRANCISCO, California — Another landlord is coming after Gap Inc.

Brookfield Property Partners LP, which owns shopping centres across the U.S., said in a court filing that the struggling retailer is refusing to open stores at the company’s properties in Texas and owes more than $2 million in rent.

“For three months running, Gap has failed to pay rent at virtually every Brookfield location nationwide, even for stores that Gap is operating,” the landlord said in court papers filed last week. “At present, Gap has withheld more than $2 million in rent from Brookfield in Texas alone.”

Brookfield is asking the court to force Gap to operate the Texas stores and pay back rent.

ADVERTISEMENT

Gap Chief Executive Officer Sonia Syngal said earlier this month the company was in talks with its landlords and was paying “what we consider fair rent.” Gap has reopened more than 1,500 of its roughly 2,600 stores in North America.

Gap, which also operates the Old Navy and Banana Republic brands, used Texas as a proving ground for reopening last month.

The Brookfield lawsuit highlights rising tensions between landlords and retailers amid the pandemic-driven economic downturn. Hundreds of tenants have missed rent payment or shuttered stores in recent months, and landlords have sent default notices.

Simon Property Group Inc., a major mall owner, previously sued Gap, arguing the retailer has failed to pay $65.9 million in rent and other charges in recent months. In May, a Manhattan landlord filed a lawsuit against the company for not paying rent at a store near Times Square.

“We remain committed to working directly with our landlords on mutually agreeable solutions and fair rent terms, just as our industry and government partners have sat with us in good faith to shape the post-Covid business landscape,” Gap said in a statement Thursday. “We are pleased with the progress we’ve made with hundreds of our landlords as we’ve reopened stores across the country.”

In This Article

© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions

More from Retail
Analysis and advice from the front lines of the retail transformation.

Adidas Prepares for Samba Slump

As the German sportswear giant taps surging demand for its Samba and Gazelle sneakers, it’s also taking steps to spread its bets ahead of peak interest.


Op-Ed | The Rise of the Unwasteful Brand

A profitable, multi-trillion dollar fashion industry populated with brands that generate minimal economic and environmental waste is within our reach, argues Lawrence Lenihan.


Fashion’s Stalled Self-Checkout Revolution

RFID technology has made self-checkout far more efficient than traditional scanning kiosks at retailers like Zara and Uniqlo, but the industry at large hesitates to fully embrace the innovation over concerns of theft and customer engagement.


view more

Subscribe to the BoF Daily Digest

The essential daily round-up of fashion news, analysis, and breaking news alerts.

The Business of Fashion

Agenda-setting intelligence, analysis and advice for the global fashion community.
CONNECT WITH US ON
The Business of Beauty Global Awards - Deadline 30 April 2024
© 2024 The Business of Fashion. All rights reserved. For more information read our Terms & Conditions, Privacy Policy, Cookie Policy and Accessibility Statement.
The Business of Beauty Global Awards - Deadline 30 April 2024