Gap Sued over Unpaid Rent on its Times Square Store
Gap Inc., a Sans Francisco based company faces serious lawsuit charges leveled against the retailer by the landlord of its Manhattan stores, the 48th Americas LLC, for unpaid utility bills of $530,334 which included unpaid rent, snow removal, and water charges for the month of April and May 2020.
The lawsuit was filed on Monday in the Manhattan Federal Court by its landlord also requesting the payment of its attorney’s fees of at least $20,000
The Gap Manhattan store is located at 1212 Avenue of the Americas, just close to New York City’s Times Square.
Gap Inc.is one of the numerous retailers to have faced financial losses due to the closure of most of its stores because of COVID-19 stay-at-home orders. This has resulted in a significant 99% decline in its year-over-year traffic as reported by Bloomberg Intelligence.
The company had earlier submitted a regulatory filing with the US Security and Exchange Commission (SEC) on April 23, 2020, due to a lack of Cash flow and planned towards the suspension of about $115 million worth of rent payments for its North American Store.
The company which also owns brands like Old Navy and the Banana Republic had at that time on April projected a decline in its cash holdings from $1.7 billion to $750 million by the end of the financial quarter ending on the 2nd of May, 2020.
Gap believes in the existence of strong legal grounds to validate their claims that under common law, they were not obligated to pay for rent for the stores that have been closed because of the governmental and public health authority orders.
Neiman Marcus, a luxury department store had earlier this week filed for bankruptcy, and Nordstrom announced the closure of 16 of its stores.
J. Crew and True Religion brands and retailers have also recently filed for bankruptcy.
Read also: Fashion Industry’s fight against COVID-19
manhattan, new york, new york city, times square, new york times square, nyc times square, 48th America LLC, coronavirus, covid-19, covid-19 pandemic, lawsuit, law suit
This site uses Akismet to reduce spam. Learn how your comment data is processed.