The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
LONDON, United Kingdom — Britain's government will void legal attempts to evict or force out small retailers and businesses due to non-payment of rent during the coronavirus crises, it said on Thursday.
The country's commercial landlords are experiencing a significant curtailment in rents as retail activity has paused temporarily due to lockdown measures to curb the spread of the virus.
The government's move comes just a few days after trade bodies British Retail Consortium and British Property Federation wrote a letter to chancellor Rishi Sunak seeking rental support.
According to reports, landlords have served winding up petitions to their tenants, with JD Sports and Primark being among the top retailers refusing to pay their March quarter rents.
ADVERTISEMENT
"Government should be robust in encouraging landlords and tenants to work together and making clear that those businesses who are able to meet their liabilities should do so", British Property Federation's Chief Executive Melanie Leech said.
"To stop these unfair practices, the government will temporarily ban the use of statutory demands and winding up orders where a company cannot pay their bills due to coronavirus, to ensure they do not fall into deeper financial strain", the government said in a statement on Thursday.
"Majority of landlords and tenants are working well together to reach agreements on debt obligations, but some landlords have been putting tenants under undue pressure by using aggressive debt recovery tactics."
Communities Secretary Robert Jenrick noted that landlords are facing their own "very serious pressures" and are concerned about their position with lenders.
The minister added that the government is working with banks and investors to seek ways to address these issues.
Overall rent collection for March quarter date fell by 28.7 percent in the UK, according to cloud-based commercial property management platform Re-Leased, which collected data from 10,000 properties and 35,000 leases on its platform.
By Samantha Machado; Editors: Patrick Graham, Bernard Orr
Fast-growing start-ups like Hettas, Saysh and Moolah Kicks created sneakers designed specifically for active women. The sportswear giants are watching closely.
The companies agreed to cap credit-card swipe fees in one of the most significant antitrust settlements ever, following a legal fight that spanned almost two decades.
In an era of austerity on Wall Street, apparel businesses are more likely to be valued on their profits rather than sales, which usually means lower payouts for founders and investors. That is, if they can find a buyer in the first place.
The fast fashion giant occupies a shrinking middle ground between Shein and Zara. New CEO Daniel Ervér can lay out the path forward when the company reports quarterly results this week.