// Primark agrees to pay select group of landlords ahead of June’s quarterly rent day
// It has forced them to sign gagging orders — after refusing to pay millions of pounds to others
Primark has reportedly agreed to pay a select group of landlords ahead of June’s quarterly rent day, but has forced them to sign gagging orders — after refusing to pay millions of pounds to others.
In March, the fast fashion retailer withheld a reported £33 million of quarterly payments due to landlords, the day after it shut 376 stores across 12 countries due to Covid-19, including 189 in the UK.
Primark pays about £125 million rent a year, and said that for every month of closure, it would lose about £650 million in sales.
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Primark announced earlier this month that it plans to reopen stores in the UK from June 15, and has been in talks with landlords about agreed rent payments.
However, Primark has asked some landlords across the 189 UK stores who will receive payment to sign non-disclosure agreements (NDAs), The Times reported.
Meanwhile, one of Primark’s landlords said that he was only paid when he signed an NDA which prohibited him from disclosing the arrangement to fellow operators.
Another landlord said that the retailer agreed to pay 75 per cent of rent for its June quarter and 50 per cent of its previously agreed service charge.
Primark said that “confidentiality agreements are standard practice” in commercially sensitive business negotiations after refusing to declare how many of its UK landlords had received payment or been asked to sign NDAS.
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