The British Hospitality Association (BHA) has thrown its weight behind a retail-led campaign calling on landlords to end the “ancient and unjustifiable” practice of requiring rent to be paid quarterly in advance.
The British Retail Consortium (BRC), which is spearheading the campaign, said the practice adds extra costs and creates real cash flow difficulties for businesses, particularly in the current tough trading conditions.
The BRC is calling on landlords to respond to the economic slowdown by offering flexibility, even on existing leases, to allow businesses to pay monthly in advance.
A spokesman for the BHA told Caterersearch that the association was fully supportive of the campaign and will be notifying its members of it.
Stephen Robertson, director-general of the BRC, said: “We have made significant progress in establishing monthly rents as the norm but today’s tough trading conditions mean the impact of paying three months in advance is that much greater.
“Seeing retailers driven to the wall is in no-one’s interest. By agreeing to a fairer rents regime, landlords will be contributing to the retail prosperity on which they themselves depend.”
BRC Rent Monthly Campaign >>
A grim outlook for hospitality as insolvencies rise by 95% in two years >>
Britain facing prolonged recession, hoteliers warned >>
Coming back from recession: operators who have beaten previous slumps >>
Folio Hotels in administration >>
2008 - Hospitality news review of the year >>
By Daniel Thomas
E-mail your comments to Daniel Thomas here.
| | Newsletters
For the latest hospitality news, sign up for our e-mail newsletters. | |