Payment Gap: Landlord sues retail giant for withholding rent at Midtown location

Apparel brand says state’s stay-at-home order removes its obligation to pay April, May charges

New York /
May.May 08, 2020 09:30 AM
Gap at 1212 6th Avenue (Credit: Google Maps)

Gap at 1212 6th Avenue (Credit: Google Maps)

The landlord for the Gap’s Midtown Manhattan location is suing the retailer, which has refused to pay April and May rent citing the state’s stay-at-home order that has kept stores shuttered across the city.

The apparel brand has withheld $530,334 in charges — including water and snow removal fees — at its 1212 Avenue of the Americas store, according to Bloomberg. The lawsuit was filed Monday in Manhattan federal court.

In the face of widespread stay-at-home orders, traffic at retailers has cratered and Bloomberg Intelligence noted a 99 percent year-over-year decline in visitors to stores nationwide.

The lawsuit comes as the Gap announced earlier this week it would reopen 800 stores across the country in the coming weeks, a move it described as “responsibly aggressive,” the New York Times reported.

The retailer had been seeking to modify its leases and defer payments. In a court filing last month, lawyers for the Gap argued it could allege default, “although we believe that strong legal grounds exist to support our claim that under common law we are not obligated to pay rent for the stores that have been closed because of the governmental and public health authority orders.”

[Bloomberg, NYT] — Georgia Kromrei


Related Articles

arrow_forward_ios
Compass' Sam Anagnosto
Bay Area broker’s Batmobile dispute riddles impropriety
Bay Area broker’s Batmobile dispute riddles impropriety
Cartier's Cyrille Vigneron and 653 Fifth Avenue (Cartier, Linkedin, Getty)
Cartier betting on appetite for luxury with US retail expansion
Cartier betting on appetite for luxury with US retail expansion
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
1 Geoffrey Way in Wayne NJ (Loopnet, Getty)
Homes are us? Passaic County weighs dev plans for ex-Toys R Us HQ
Homes are us? Passaic County weighs dev plans for ex-Toys R Us HQ
(Photo Illustration by The Real Deal with Getty Images)
Office occupancy stalls after Labor Day push
Office occupancy stalls after Labor Day push
From left: Kerber’s Farm's Nick Voulgaris and Jamestown Properties' Michael Phillips along with 801-803 Greenwich Street (Getty Images, Jamestown Properties, LoopNet)
Long Island farmer turns his pitchfork on Jamestown
Long Island farmer turns his pitchfork on Jamestown
From left: Landlord Steve Croman and White Horse Tavern owner Eytan Sugarman along with the White Horse Tavern at 567 Hudson Street (Getty Images, Google Maps, Instagram/boyfromnewyorkcity)
Croman sues White Horse Tavern owner for $650K back rent
Croman sues White Horse Tavern owner for $650K back rent
Blackstone's Stephen Schwarzman and 8 Spruce Street (Photo Illustration by Steven Dilakian for The Real Deal with Getty Images and Twitter/AAsArchitecture)
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
Blackstone’s 8 Spruce sues tenant over alleged pop-up restaurant
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...