We are facing a period of uncertainty': Gap stops paying rent at North America stores

Gap Inc. said it's future is uncertain as its brick-and-mortar stores are shuttered and demand for its clothing and fashion products plummets amid the coronavirus pandemic.

The San Francisco-based clothing retailer that also owns Banana Republic and Old Navy is running out of cash and may not be able to continue operations without an infusion.

As of Feb. 1, the company had $1.7 billion, and by the end of the fiscal quarter ending May 2, it expects to have $750 to $850 million in cash and cash equivalents, including short-term investments.

An SEC filing posted Thursday reveals Gap stopped paying rent for its 2,785 North American retail stores in April, an expense totaling $155 million.

In a March 30 statement, the company announced that it was furloughing the majority of its store employees in the United States and Canada, "pausing pay but continuing to offer applicable benefits until stores are able to reopen."

To further cut expenses, the company has said it will "reduce head count across its corporate functions around the world" and reduce pay for its leadership team and members of its board of directors. Gap may also permanently close some stores.

https://www.sec.gov/ix?doc=/Archives/edgar/data/39911/000003991120000053/a8klaunch.htm