21 Companies Refusing to Pay Rent as Millions of Americans Face Eviction

COVID-19 has dealt a crushing financial blow to the retail sector, sending more shoppers online and slashing foot traffic even in reopened stores. Retailers have responded by conserving cash in any way possible, including by paying only a fraction of their rent — or in many cases, no rent at all. The situation is slowly improving, but many companies are still behind, much to the chagrin of individual renters who don't have the luxury of not paying up. Here are just a few of the retailers butting heads with their landlords during the pandemic.

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After temporarily closing chain-wide during the spring, Gap Inc. stopped paying rent for its more than 2,700 stores in April, skipping out on payments amounting to $155 million, according to Forbes. The move has been met by lawsuits from landlords including major mall owners Simon Property Group and Brookfield Properties. Simon accuses Gap of "taking opportunistic advantage" of the pandemic by refusing to pay rent even for re-opened stores.

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The proverbial 800-pound gorilla of coffee chains stunned its landlords by requesting a full year of rent concessions starting in June, citing the "staggering economic cost" of the pandemic. It's unclear how many of its landlords are cutting the company a break, but many vowed to collect their full payments — or take Starbucks to court as needed.

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The pandemic shut down many cinemas for months, and AMC has responded in part by slashing its rent payments. The nation's largest theater chain has been paying just 15% of its rent for several months, according to commercial real-estate analysis firm Datex. AMC recently announced that it expects to reopen more than two-thirds of its 600 theaters by early September, and will sell 15-cent tickets on opening day.

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Don't you wish you could pay only half your rent? Nordstrom is doing just that for the remainder of the year, having informed landlords that it will again pay the full amount only if locations reach 90% of their 2019 sales. The department store chain also cut thousands of jobs in June and announced that it would be closing 16 stores permanently.

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A Texas court okayed an extension in June to give JCPenney more time to pay its landlords. The iconic department store still owed both May and June rent at the time. It might not come as a surprise that JCPenney has had trouble paying up — it declared Chapter 11 bankruptcy in mid-May and announced plans to close 240 stores.

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One of the first major retailers to file bankruptcy during the pandemic, J. Crew has successfully sought rent relief from its landlords across the country. The negotiations will save the preppy-apparel stalwart about $130 million even as 95% of its stores have reopened.

Restaurants have had a rough go of it during the pandemic, too — especially chains like The Cheesecake Factory that rely heavily on dine-in business. The chain told landlords in a letter that it would withhold April rent payments "due to these extraordinary events," a move met with bemusement on Twitter as individual tenants around the country struggle with their own rent payments.

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This kid-friendly icon has been one of the most notable names to file for Chapter 11 bankruptcy since the pandemic began. Crippled by restaurant shutdowns in the spring, the company has paid only 3% of its rent in July, down from about 27% in June and 15% in May, according to Datex. It recently received court approval to  withhold rent for longer while it restructures.

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Lacy lingerie and scented candles are a tough sell during a pandemic. Ohio-based L Brands, owner of Victoria's Secret and Bath & Body Works, said in May that it was no longer paying rent for its stores. The company has long been on uncertain financial footing and recently said it would also cut 15% of its corporate workforce in order to streamline costs. 

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Another early-pandemic victim of Chapter 11 bankruptcy, 24 Hour Fitness was granted a request to defer $65 million in rent payments in early July, angering its cash-strapped landlords. The company is closing more than 100 of its locations as it restructures, and was sued by members who said it continued charging dues even while it was closed. 

In response to a chain-wide shutdown, Dave & Buster's withheld its April rent payments and negotiated some form of rent relief with many of its landlords. It has slowly reopened many locations over the summer, streamlining store hours and reconfiguring its arcade layouts to allow for social distancing. 

While Macy's may be in better financial health than many of the nation's struggling department store chains, that's not saying much, especially during the pandemic. Macy's has struck deals with many landlords to delay rent payments, according to CNBC. However, at least one landlord has sued, saying Macy's-owned Bloomingdale's owes $2.5 million for an outlet location on Broadway in New York City.

Mattress Firm is yet another chain still reeling from extended store shutdowns. After a lot of back-and-forth with landlords, the nation's most prominent mattress retailer settled on a deal to pay only part of its rent earlier this year. By the end of April, the chain had paid only 26% of its rent, according to Datex.

The landlord of fast-fashion empire H&M's largest store, Herald Square in New York City, has been stiffed on $4.2 million in rent and other fees, according to a lawsuit filed in June. It's just one of the landlords that has lost out on rent as H&M has tried to cut costs during the pandemic. The chain also furloughed workers and has struggled to pay rent at its locations abroad, too, including in Germany and the U.K.  

The parent company of Ann Taylor, Loft, and Lane Bryant has also filed for Chapter 11 bankruptcy during the pandemic. Its filing showed it owed $31.7 million in rent to landlords including Simon Property Group and Brookfield Properties. According to Datex, Lane Bryant and Ascena's tween chain, Justice, failed to pay rent entirely since the end of March. Ascena's restructuring plans include closing all of its Justice stores and transitioning the brand online.

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This casual family restaurant has the dubious distinction of falling behind on rent not just on its restaurants, but on its corporate offices. The owner of its headquarters outside Denver sued Red Robin for nonpayment in April and May. Red Robin was also paying only partial rent on some of its restaurants, and executives and some other support staffers were taking pay cuts to help the chain save money.

May passed without landlords receiving any rent payments from this purveyor of cookware, towels, and other home staples, and June saw only 8% of rent paid, according to The Real Deal. Several media reports show that the chain, which recently said it will close 200 stores over the next two years, has faced lawsuits from several  landlords. 

This tween-favorite destination for jewelry and accessories filed for bankruptcy in 2018, but was able to reopen later that year after eliminating nearly $2 billion in debt. But the pandemic hasn't been kind to the mostly mall-based retailer, nor to its landlords. Claire's had only paid 2.6% of its rent in June and none in May, according to data from Datex.

Many people are working in sweatpants instead of suits right now, a reality that has meant financial disaster for Brooks Brothers. The businesswear chain filed for Chapter 11 bankruptcy earlier this year and owes rent to the tune of $7.2 million. Still, it just received approval from a bankruptcy court to delay those payments into September. The company has also shut down U.S. factories, furloughed some employees, and cut salaries. 

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Fancy a new pair of sneakers? Foot Locker sure hopes so, as the footwear chain has seen sales plummet during the pandemic and paid only a fraction of its rent: 3.5% in May, 26% in June, and 37% in July, according to Datex data. The chain is also trying to reduce its reliance on malls and bolster e-commerce as it battles to make up lost ground.

Foreshadowing an eventual Chapter 11 filing at the end of June, GNC withheld $19 million in rent and related payments in April, and $16 million in May, the company said in its first-quarter financial filing. It plans to close up to 1,200 stores as it restructures while in bankruptcy.