The owner of the Black Rock Shopping Center in Fairfield has filed litigation seeking to recoup back rent from its Gap and Old Navy tenants.
R-K Black Rock I LLC owns the plaza at 2215 Black Rock Turnpike.
The landlord recently filed two lawsuits in state Superior Court seeking to get paid back rent, court documents show. The lawsuits were moved to U.S. District Court this week because of the amount in demand and because the parties are from multiple states.
Old Navy, a global apparel and accessories brand with some 1,200 stores around the world, is a division of the San Francisco-based clothing retailer Gap Inc.
The lawsuits claim breach of contract, as the retailers have leases that extend for another four to five years, court documents show.
Attorney Matthew Schenker of the firm Fox Rothschild in New York City, who represents the landlord, indicated that in spite of notices of default, the tenants have “failed and refused” to make requested payments and abide by the terms of the leases.
The Gap store owes some $119,729 in back rent, and the Old Navy store owes $129,382, the litigation alleges. The overdue rents are from the months since the start of the coronavirus pandemic.
Attorney Matthew Brown of Wiggin and Dana, who is representing Gap Inc., could not be reached for comment.
As with many retailers, the companies have been negatively impacted by the pandemic, with Gap Inc. announcing in mid-March that it would temporarily close its stores, including Old Navy and other brands. While stores have been reopening and shoppers slowly returning, it remains to be seen when shopping will return to pre-pandemic levels.
Gap Inc. is facing similar litigation around the country, and has indicated that it is committed to working with landlords to find solutions agreeable to both parties.
Justine Jordan, manager of external communications for Gap Inc., issued the following statement from the company Wednesday evening:
“The COVID-19 pandemic has had a profound effect on the retail industry, and like many retailers, Gap Inc. was forced to close its North American stores to our customers for months due to the pandemic, and upon the reopening of our stores, we are being subject to restrictions that no one foresaw before the closures, much less when the leases were entered. While we had hoped the infection rates would plateau and drop quickly all over the country, the reality is, infections are spiking and regulations are evolving.”
“We remain committed to working with our landlords on mutually agreeable solutions and fair rent terms, just as our industry and government partners have sat with us in good faith to shape the post COVID business landscape,” the statement added. “We are pleased with the progress we’ve made with hundreds of our landlords as we’ve reopened stores across the country, moving forward together towards growth.”
Contact Michelle Tuccitto Sullo at msullo@newhavenbiz.com.
