Market Overview

Simon Property To Gap: See You In Court For Not Paying Rent

Simon Property To Gap: See You In Court For Not Paying Rent

Mall owner giant Simon Property Group Inc (NYSE: SPG) is suing retailer Gap Inc (NYSE: GPS) over unpaid rent and other expenses, The Wall Street Journal reported on Thursday.

What Happened

Simon is taking Gap to court as the retailer failed to pay its rent for April, May and June, according to WSJ. Simon is also requesting the court force Gap to pay its attorney fees and other expenses.

Simon said in the complaint the requirement that Gap and its entities "timely pay rent due under the leases has not been excused."

Gap previously said in April it can't pay rent because of its cash flow problems brought on by the COVID-1 pandemic.

Why It's Important

Gap CFO Katrina O'Connell said in its first-quarter conference call on Thursday it's "knee deep with all the landlords today." The executive said it's "very hard" to offer any timeline, although it's looking for ways to "partners with our landlords to come out with a better profitability for the company."

Simon properties had 412 Gap and its other branded stores, making it one of the mall owner's top store tenants aside from department stores.

Gap's stock traded around $12.24 per share at the time of publication.

Related Links:

GAP Losses Pile Up To Nearly $1B Due To Coronavirus Store Closures

Cramer Says The Latest Rotation Trend Is Driven By 'Ravenous Consumers'


Related Articles (GPS + SPG)

View Comments and Join the Discussion!

Posted-In: malls retail retailersNews REIT Retail Sales Media Real Estate Best of Benzinga