US Retailers Weigh Missing Rent Payments to Alleviate Coronavirus Pressure
Large US retail and restaurant chains have informed landlords that they will not pay rent in the coming months, according to Bloomberg.
The novel coronavirus COVID-19 has forced consumers to remain at home to slow the spread of the virus. This event has led to decreased traffic at restaurants and retail stores and a lack of cash flow to pay fixed costs, like rent.
Mattress Firm, Subway, and The Cheesecake Factory are some of the big names that are taking this initiative. The companies are requesting rent reductions through April through lease amendments. This could create a ripple effect as many landlords cannot stay afloat long without collecting payments.
“The court system is just going to get flooded with a million of these disputes between tenants and landlords,” said Vince Tibone, an analyst at Green Street Advisors. “If the government doesn’t step in in any form or fashion, it could get ugly. They need to respond quickly.”
Large US retail and restaurant chains have informed landlords that they will not pay rent in the coming months.