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80% Of Retailers In Rent Arrears

/ 24th August 2021 /
Jake Mulcahy

A survey of 145 retailers conducted by representative body Retail Excellence has shed light on the Covid-related difficulties retailers are facing.

The 145 retailers surveyed collectively operate over 1,650 outlets across the country

According to the survey, 80% of retailers are in rent arrears with at least one landlord, while in approximately 20% of cases landlords will not engage and are demanding full payment of rent due, including for the nine months that stores were closed.

The survey also found that two-thirds of rent arrears cases 'without an appropriate resolution' involved institutional landlords and shopping centres.

Of the landlords willing to engage with survey respondents, the most common resolution offered was 50% off on periods of closure, or a deferred payment plan.

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Retail Excellence managing director Duncan Graham (pictured) said: "This survey provides a useful indication of what is happening in the market at present, as retailers struggle to get back on their feet after the body-blow of enforced closures due to the pandemic.

"We welcome any engagement from landlords on rent arrears, and as such it is concerning to see one in five respondents say landlords are not engaging with them on rent due and are demanding full payment despite the fact that stores were shut for nine months.

"Deals are being done across the board but in general, it seems it is the smaller, local landlords that are being reasonable and willing to compromise. Whereas in comparison, the majority of problem cases from this survey refer to bigger landlords.”

Pic: Robbie Reynolds

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