Ladbrokes and Coral withhold rent payments to landlords
Ladbrokes and Coral have refused to pay rent on more than 3,000 shops, dealing a fresh blow to high street landlords who have been hit hard by the coronavirus lockdown.
The two bookmakers, which are owned by GVC Holdings, withheld rent payments last week, according to Sky News. The firm insisted it would make up the deficit when “normal” trading conditions resume.
The move comes as a number of high street tenants preserve cash by closing estates and ask for rent holidays.
Yesterday embattled retail landlord Intu threatened to issue statutory demands to tenants that have refused to pay rent during the coronavirus crisis. Last week it revealed less than a third of rent due for the quarter due to the coronavirus outbreak.
Intu said it would negotiate with tenants on a case by case basis, but would not “bankroll” retailers that have “just decided they don’t want to pay their rent” during the coronavirus crisis.
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GVC and other betting firms have been badly hit by the outbreak of Covid-19, which forced the closure of live sports across the globe. Betfred also asked landlords for a rent holiday last month.
A GVC spokesperson said: “In view of the enforced closure of all Ladbrokes and Coral betting shops in line with government guidelines, GVC has taken the difficult decision to temporarily place on hold rental payments to its landlords.”
“The decision has been taken in order to ensure as many shops are in a position to reopen once the current crisis abates. The group fully intends to make-up the shortfall once normal trading conditions resume.”
“We have written to our landlords to inform them and request their understanding of the decision, which will not only help to secure the long-term future of their rental incomes but also the jobs of over 15,000 retail colleagues.”