Landlords have agreed details of plans to allow smaller chains and independent retailers to pay their rents on a monthly basis.
Arcadia owner Sir Philip Green and New Look chairman Phil Wrigley are among a group of retailers who have been campaigning to scrap quarterly rent payments to help ease cashflow difficulties for retailers during the recession.
Following the talks, landlords have agreed that businesses with three or fewer shops paying an annual rent of £50,000 or less will be able to pay monthly in advance instead of on a quarterly basis, if they pay by direct debit.
Landlords have also launched a pilot initiative to cut service charges by 20%. The pilot includes Land Securities’ White Rose scheme in Leeds, Capital Shopping Centres and Prupim’s Cabot Circus in Bristol, British Land’s Meadowhall in Sheffield and Westfield’s Merryhill scheme near Brierley Hill in the West Midlands.
Discussions on rates insurance, rent reviews and lease structures are ongoing.