In a court filing, Brookfield Property Partners made a statement that GAP has refused to open the stores in Texas and owes more than $ 2 million in rent. Brookfield is asking the court to force Gap to operate the Texas stores and pay back 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.”
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.
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. Simon operates Firewheel Town Center in Garland, North East Mall in Hurst, Hulen Mall and the Shops at Clearfork in Fort Worth, Premium Outlets in Allen and Grand Prairie and Grapevine Mills.
