Australia's largest shopping centre landlord, Scentre Group, is in open warfare with one of its major tenants, clothing retailer Mosaic Brands, which is threatening to shut 500 stores unless landlords reduce rents.

Scentre Group chief executive Peter Allen, who reported a $3.6 billion loss for the six months to June 30 after slashing property valuations by more than $4 billion, accused retailers, such as Mosaic, of refusing to pay rent even when they were profitable, had access to capital or had negotiated rent cuts.