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Exclusive: Footasylum asks for rent-free Q3

Footasylum has approached landlords to request a three-month rent holiday for the third quarter from 25 June, Drapers can reveal. 

It is understood that the footwear retailer has asked landlords for a rent break for the three months from the end of June to mitigate the financial impact of coronavirus

On Wednesday 25 March this week, when the next quarterly rent payments were due, many retailers withheld rent payments after the government ordered all non-essential stores to shut.

Shopping centre owner Intu Properties, which counts Manchester’s Trafford Centre and Lakeside in Essex in its portfolio, said this week it had received less than one-third of UK quarterly rents it was due. As a result, it warned of a breach of its upcoming debt covenants.

The landlord previously announced that it will slash service charges for tenants by 22% in the second half of 2020. 

British Land, owner of Sheffield’s Meadowhall and SouthGate in Bath said it will defer £40m in rents for this quarter, and spread repayments for retailers experiencing financial challenge because of the Covid-19 pandemic. 

The government has also announced protection from eviction for commercial tenants unable to pay their rental instalments over the coming three months. However, the protection does not stretch to the June quarter for which Footasylum is requesting a rent holiday. 

Footaslyum declined to comment. 

 

Readers' comments (1)

  • Surely this is the moment in time to move all rental agreements to monthly rather than quarterly.
    Also, now carry out the overdue business rates review for the High Street, that makes sense & is proportionate to the rents that will actually be paid, going forward.

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