Gap stops paying rent amid coronavirus, says stores may permanently close

[turbinetree]

2020/4/23 12:45 (EDT)
©Advance Local Media LLC.

Gap said on Thursday its existing cash fund may not be enough to sustain operations as the coronavirus pandemic continues to financially impact both the company and retail industry as a whole.

The clothing company said in an SEC filing it has indefinitely suspended rent payments, which come to about $115 million per month in North America, and that some stores may permanently close.

There are 28 Gap stores in New Jersey and 1,700 worldwide, according to the company’s website. All of Gap’s U.S. stores have been temporarily closed since March 19 due to the pandemic.

“We are currently negotiating with the counter-parties under those leases to defer or abate the applicable rent during the store closure period, to modify the terms (including rent) of our leases going forward after the stores reopen, or in certain instances to terminate the leases and permanently close some of the stores," Gap said in the SEC filing.

https://www.rawstory.com/2020/04/gap-stops-paying-rent-amid-coronavirus-says-stores-may-permanently-close/

Again why is the stock market up today..............oh yeah because democrats in the house want to save companies and Americans again........while in the senate its a red state blue state thingy.........again..............

[JCMach1]

1. There needs to be rent holiday for everyone for the duration

This would save many small businesses.

This should be coupled with mortgage adjustments for borrowers (tack months on the end for those that can't pay)

[turbinetree]

2. Check this out it was on yesterday...............

[Bayard]

8. Include mortgages.

Foreclosures are going to run wild.

[lame54]

3. Who's going to fill the - geez, what's the word?

[kimbutgar]

4. This doesn't surprise me

When I went to the mall before Ovid 19 the Gap stores rarely have customers. It’s been hanging on for years and now this is what will finally push it over the cliff.

[Initech]

6. Yeah the virus has just wrecked everything.

And there seems to be no end to the economic and social bloodbaths we are seeing in addition to the death toll. I just want it to stop.

[superpatriotman]

5. Old Navy, too?

Same corporation

[doc03]

7. Isn't the Gap one of Lex Wagner's stores? Before the mall

closed about 20% of the stores were closed. When it opens back up I doubt 50% of the ones left come back.

[cbdo2007]

9. Many places that are failing, like Gap, were already teetering on the brink of collapse for years...

and are hundreds of millions in debt already, before all this happened.

They are learning that this constant-debt business model isn't good in a crisis.

[leftyladyfrommo]

10. Nordstroms, Jcpenney. Macy's have all let

thousands go.