Some more troubles for Gap, Inc.!
The American fashion retailer has been dragged to Texas court by Brookfield Property over former’s failure to make rental payments of more than US 2 million in Brookfield’s property in Texas.
In the case that was filed, the landlord has claimed that Gap is not only reluctant to open its stores at Brookfield’s properties in Texas, but has also not being paying rent for 3 months at almost every other site that’s owned by Brookfield.
A Brookfield spokesperson, while talking to media, said that instead of working together in tandem, Gap has been taking some inappropriate positions, which is now forcing Brookfield to take this decision. The spokesperson declined to comment further.
Filing a law suit is a matter of contract law for which the landlord intends to hold the fashion retailer responsible. Brookfield has urged the court to compel Gap to operate its stores in Texas and also to pay rent.
This is another blow for Gap in less than 2 weeks!
Earlier this month, Simon Property Group too had filed a law suit against the retailer for breaching the contract and not paying the rent. The rent and lease charges that Gap owes to Simon Property amounts to US $ 65.9 million.
Before that, 48th Americas LLC too had filed the lawsuit in the New York court against Gap after the latter had not paid rent for the months of April and May.
Also Read: Gap sued for not paying rent for their Manhattan store
Gap, Inc. runs both company-owned and franchise stores in 43 countries including US, the UK and Canada and generates revenue of US $ 16.6 billion.
