Gap sued over $2 Million by Brookfield

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Brookfield Property Partners LP, which owns shopping centers across the U.S., said in a court file that the struggling retailer refused to open shops at Texas-based properties and owed more than $2 million in rent.

“Gap has refused to pay rent at nearly every Brookfield location nationally for three months now, including for stores that Gap owns,” the landlord said in court papers that were filed last week. “Already Gap has withheld more than $2 million in rent from Brookfield alone in Texas.”

Gap Chief Executive Sonia Syngal said earlier this month that the firm was in negotiations with its tenants and paying “what we deem decent rent.” Gap has reopened more than 1,500 of its nearly 2,600 North American outlets.

Gap, which also operates the Old Navy and Banana Republic brands, used Texas as a proving ground for reopening last month.

Simon Property Group Inc., a large store shareholder that also prosecuted Target, claiming in recent months that the chain had refused to compensate $65.9 million in rent and other costs. A Manhattan owner lodged a complaint against the corporation in May for failure to pay rent in a shop near Times Square. – Adapted from BOF

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