Retailers seek “pandemic clauses” to cut rent payments

795
Covid-19 pandemic lockdown
The clauses are structured so that the rent is halved when an enforced closure takes place in the case of a local lockdown
// Retailers taking new leases are demanding “pandemic clauses”
// The clauses mean rent payments will be reduced if the store is forced to close in a lockdown
// The government’s local restrictions continue to impact the high street

Retailers taking new leases are reportedly calling for “pandemic clauses” that means rent payments will be reduced if the store is forced to close due to a local lockdown.

An increased number of retailers are seeking such clauses as the government’s local restrictions impact the high street.

On Tuesday, shops selling non-essential goods closed in Wales for 17 days as the country went into a national firebreak lockdown.


READ MORE:


Meanwhile, non-essential retail in Scotland remains at risk of temporary closure if a proposal featuring localised top-tier restrictions by Scotland First Minister Nicola Sturgeon were to be approved and implemented.

Amazon is seeking sites for a new chain of convenience stores and bookshops, along with Sports Direct, Schuh and Vans owner VF Corporation, which is looking to insert the clause into new leases, The Sunday Times reported.

The clauses are structured so that the rent is halved when an enforced closure takes place in the case of a local lockdown.

If a lease is based on turnover, the base rent will fall by half.

Shopping centre owners Hammerson and British Land have already agreed leases on these terms.

Click here to sign up to Retail Gazette‘s free daily email newsletter

LEAVE A REPLY

Please enter your comment!
Please enter your name here