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Gap sued over unpaid rent at Midtown Manhattan store

Bloomberg logoBloomberg 5/7/2020 Robert Burnson
a group of people standing in front of a crowd: A shopper carries a Gap Inc. bag in New York, U.S., on Thursday, April 13, 2017. Bloomberg is scheduled to release U.S. weekly consumer comfort figures on April 27. © Bloomberg A shopper carries a Gap Inc. bag in New York, U.S., on Thursday, April 13, 2017. Bloomberg is scheduled to release U.S. weekly consumer comfort figures on April 27.

(Bloomberg) -- In another sign of the stress faced by retailers whose stores are shuttered by the coronavirus outbreak, Gap Inc. quit paying rent for its store near New York City’s Times Square, according to a lawsuit.

The landlord of the Gap store at 1212 Avenue of the Americas says the apparel giant failed to pay rent for April and May, along with water charges and snow removal, leaving the company with an unpaid bill of $530,334.

Covid-19 stay-at-home orders have closed most of the nation’s clothing stores, with traffic plummetting 99% year-over-year in the latest week, according to Bloomberg Intelligence.

In addition to back rent, Gap’s landlord, 48th Americas LLC, is asking for attorneys fees of at least $20,000.

The suit was filed Monday in federal court in Manhattan.

Gap didn’t immediately return a request for comment.

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