Whitbread Reportedly Informed Landlords Last Month That It Planned To Only Pay 50% Of Rent For Q4 2020
Premier Inn owner Whitbread reportedly wrote to landlords last month to inform them that it planned to only pay 50% of rent for the last three months of 2020.
According to The Irish News, the letter stated that Whitbread suffered "significant" net cash outflows during the first half of 2020, and that the company intended to deduct the payment from its quarterly rent, which was due on December 25.
Asking Landlords For Support
The Irish News quotes a spokesperson for Whitbread as saying, "Throughout the pandemic to date, we have paid our rent commitments in full, even when our hotels and restaurants were forced to close.
"With ongoing government restrictions expected to result in subdued market demand into the first half of 2021, we are now asking our landlords to support us, as other stakeholders have during the pandemic, through a reduction in rent for the December quarter in recognition of the current environment."
Statistics And Job Cuts
Whitbread experienced a pre-tax loss of £724.7 million during the six months to August 27, 2020, while its revenues decreased by 76.9% to £250.8 million.
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