Merchandising

Mall operator suing retailers for late rent

Photo by istock.com

June 8, 2020

Simon Property, the biggest mall operator in the U.S., is suing Old Navy, Banana Republic and The Gap for back rent and other charges related to store leases in Simon malls.

The suit, according to a New York Post report, seeks $66 million and was filed late last week in Delaware. The brands stopped paying rent as the COVID-19 pandemic forced store closures, according to the report.

"Simon is trying to send a message to the world that no one is too big to not pay the rent," Kenneth Rosen, a bankruptcy attorney at Lowenstein Sandler, told the news outlet. "Everyone will be watching for the first major court decision on whether the pandemic excuses the payment of rent."