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Women's Clothing Retailer Closed Temporarily For Owing $130K In Back Rent At Galleria Mall

The Galleria in Houston

A'gaci, a women's fashion retailer, was locked out of its location at Houston Galleria Mall Thursday for failure to pay rent, according to a notice from Simon Property Group. 

The notice stated the retailer owes $132,644.43 in delinquent rent, plus approximately $500 for the cost of changing the locks. Simon asked for the rent to be paid in full within 10 days or the retailer would relinquish possession of the premises, per the notice.

A Simon spokesperson told Bisnow that the A'gaci's Galleria location is open today, but did not confirm any details on the payment. 

A'gaci filed for Chapter 11 bankruptcy protection in January 2018. In the initial court filing, the retailer sought court approval to close up to 49 of its 76 operating stores. It also estimated that the lease payments at about two-thirds of its locations were unfavorably high.

The notice found at A'gaci in Houston Galleria Mall on Thursday, March 21.

"The actual number of store closings will depend on our ability to work with landlords for many of our locations to negotiate more favorable lease terms and rent reductions," A'gaci Chief Merchandising Officer David Won said in a release at the time. 

"By filing for Chapter 11 and entering into negotiations with landlords, we believe we will be able to address our overall cost structure which is not sustainable given the current retail environment," A'gaci CEO John Won said in a release. "The results of this action, combined with our strong store base and online presence, will allow A'gaci to emerge as a more competitive player in the fashion industry."

Bisnow made multiple attempts to reach A'gaci. Several numbers for locations in Houston and the headquarters in San Antonio were disconnected. Bisnow left a voicemail with Haynes and Boone LLP, the retailer's bankruptcy attorney.  

A'gaci has stores in seven states and Puerto Rico, with its three Houston locations at The Galleria, West Oaks Mall and Willowbrook Mall, according to its website.