In a response to not paying rent for its Times Square store in Manhattan, New York, Gap has landed themselves in a lawsuit by the store’s landlord.
Gap’s landlord, 48th Americas LLC, has filed the lawsuit in the New York court against Gap for failing to pay rent for the months of April and May.
Apart from the actual rent, the company also failed to pay various maintenance costs like water bills and snow removal bills, which amounted to a total bill of US $ 530,334.
Last month, Gap was seen to shut stores all across America and many parts of the globe, which resulted in the brand failing to maintain financial flow. Gap had reported that rent payments of US $ 115 million were halted for its stores in North America and the Manhattan store was one of them.
Their filing on 23 April revealed that while the landlords may allege default, Gap claims that under strong legal grounds they aren’t obliged to pay rent if the store closures were ordered by Government and health authorities.
