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.
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