The Gap Inc. has become a casualty of the Covid-19 pandemic. First they cancelled all Spring/Summer 2020 orders, furloughing most of it’s workers in the U.S. and Canada and last month in April failed to make rent payments for all stores closed by the Corona Virus pandemic saving about $115 million a month. Since February the Gap has run out of it’s 1 billion in cash, and alerted the SEC in a filing that they have run out of cash to continue to operate.

But on late Thursday via a company press release, announced an offer of about $2.3 billion in new senior secured notes, using intellectual property and real estate as collateral. The Gap Inc. ratings was downgraded by S&P and Moody’s following the offer, to BB- from BB and Ba1 from Ba2 respectfully.

Gap Inc. also said that pending the outcome of lease negotiations, some stores may never reopen. It is quite possible that the Gap could disappear forever, if it cannot rebound from it’s huge debt and the beating from the Covid-19 pandemic.

The Gaps other brands include: Banana Republic, Old Navy and Athleta.