Gap is facing a lawsuit after failing to pay rent for one of its New York City stores for the months of April and May, Bloomberg Reports. In addition to the unpaid rent, the landlord of the company’s 1212 Avenue of the Americas location is seeking water charges and snow removal, as well as $20,000 in attorney fees, leaving an estimated total of $550,334.
Gap is one of countless retailers strongly impacted by the coronavirus pandemic. As of this week, retail traffic has fallen 99.9 percent year-over-year due to stay-at-home orders across the United States.
According to Bloomberg, Gap has suspended roughly $115 million worth of rent payments for its North American stores. The retail company has been hoping to renegotiate its leases and continue to suspend rent, although it is well aware landlords can claim default. Gap insists, however, that under common law, they are not obligated to pay rent for locations that have been closed due to governmental and public health authority orders.
For more on the lawsuit against Gap, which was filed earlier this week in federal court, visit Bloomberg.