// H&M has told landlords it will abandon store leases if turnover does not return to normal levels beyond the pandemic
// The retail giant wrote to landlords to agree to terms that could see it break a store lease with 1 month’s notice
H&M has issued its landlords an ultimatum that it will abandon store leases if it does not see its turnover return to pre-coronavirus levels once the pandemic ends.
The fashion retail group wrote to landlords to ask them to agree to terms that could see it break a store lease with one month’s notice if trading conditions did not return to pre-outbreak levels.
“This is an extreme situation and H&M group is working extensively to manage the Covid-19 situation, the highest priority being the safety of employees and customers,” a H&M spokeswoman said.
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“All activities in the company are now being carefully evaluated – including costs and risk perspective – to be able to mitigate the negative effects associated with the virus as far as possible.
“We cannot go into specific details, but our intention is to handle this extraordinary period in the best way possible and work with our long-term partners.
“We see it as a joint responsibility between us and our partners to ensure a financially stable and sustainable future for our businesses.”
H&M joined the growing number of retailers last week asking their landlords for a rent holiday as the crisis stops shoppers going to high streets across Europe.
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