Many of the country’s biggest retailers are threatening to pay landlords monthly, rather than quarterly, rents without prior agreement in an escalation of tension between companies in the two struggling sectors.
In a recent letter to landlords Sir Philip Green, the owner of BHS and Arcadia asks for 'an open and honest conversation...regarding the existing archaic leasing and rent review structure that currently exists in the United Kingdom'.
The letter claims the support of 33 retailers on top of Sir Philip’s BHS and Arcadia, the large portfolio of stores that ranges from Topshop to Burton. In addition to the proposed switch to monthly rents, Sir Philip has asked to discuss service charges and insurance.
Landlords have agreed typically to shift to easier terms when a retailer is in serious danger of running out of cash but now less stricken tenants are calling for change.
Financial Times, Daily Telegraph