The company issued a dire warning in a regulatory filing Thursday that $1 billion in cash has evaporated from its accounts since February. Gap said it might have as little as $750 million in the bank as early as next week.
The apparel company, which also has rent to pay for Old Navy and Banana Republic stores, says it’s negotiating with landlords to “modify the terms of our leases going forward after the stores reopen.” It also said it might close some stores and warned there’s “no assurance” it can favorably renegotiate the terms.
“Traditional department stores, apparel retailers and mom-and-pop shops of all types are struggling to survive, and bankruptcies will spike despite the federal assistance programs,” Kerstin Braun, president of Stenn Group, an international trade finance organization, recently told CNN Business.
— CNN Business’ Nathaniel Meyersohn contributed to this report.