British Retail Consortium urges landlords to follow Hermes' lead
- Published: 29 September 2008 10:09
- Author: Laura Weir
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- Last Updated: 30 September 2008 08:37
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The British Retail Consortium is calling on landlords to re-negotiate existing leases after landlord Hermes agreed to offer its tenants the chance to pay their rents monthly in advance.
Today, on quarter day, the BRC is calling on all commercial landlords to follow suit, as retailers insist that quarterly payments place added financial burden on cash flow and that landlords need to be more flexible in the troubled economic climate.
BRC director general Stephen Robertson said: "The dam has burst. Hermes' move shows there is no principled or practical reason why landlords cannot offer this flexibility. As many retailers are confronted with next quarter's huge up-front rent bills, Hermes announcement is a significant step forward for our campaign. A number of retailers have gone into administration this year. Others are clearly struggling. I urge all landlords to follow Hermes' example."
Last week, pension fund manager and landlord Hermes, proposed the possibility of paying monthly rents in exchange for payments to compensate for the cost of moving from quarterly to monthly arrangements.
The move follows the on-going campaign led by Arcadia boss Sir Philip Green and Carpetright founder Lord Harris for more flexible leases for retailers.
