- We are negotiating with 10 landlords for rent due on our retail premises, what deals are other businesses striking with regard to a reduction in rent at this time?
- Reply To: We are negotiating with 10 landlords for rent due on our retail premises, what deals are other businesses striking with regard to a reduction in rent at this time?
Reply submitted 27/03/20 @ 11:25am::
In retail we are at the pointy end of the supply chain
There is no doubt and its certainly the messaging that is out there
that we all need to share in this ..
I am not a legal advisor, I am a vertical retailer that has taken a common
sense and collaborative approach to managing this, so hopefully this is helpful
Firstly look at your lease as some have a clause that offers some protection
( legal advisors in the group may want to add to this )
I have ten fashion retail stores and absolutely NO sales ( including web)
I have simply sent an email out to all my landlords
to advise them that I will need at least a 3 month “rent holiday”
and I will communicate with them from then, all my automatic rent payments have been stopped.
Sure I have had mixed reaction
Some landlords have been awesome, others have tried to deal ( ie pay 50% )
some have said no and some have been silent.
I have stopped all rent payments and I am focusing on my people and topping up their wages
so they have security .
Also don’t also forget about Eftpos, phone and internet and other variable payments that you may have
everything is negotiable in this environment
Happy send template I sent to my landlords if anyone wants it