Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Landlords Need To Work With Retail Tenants Through Crisis

 Retail NZ is applauding those landlords who are working with tenants to help them through the current Covid-19 crisis, but warns that landlords who aren’t prepared to review rental terms will push struggling retail businesses into insolvency.

“Rent is typically the second largest cost for a retail business, and they have been steadily increasing over time, while net margins for retailers have been declining,” Retail NZ Chief Executive Greg Harford said today. “The current Covid-19 crisis is seeing many retailers at a point where previous rentals are simply unsustainable for many retailers who are seeking rent relief from their landlords.

“Some landlords are working constructively with retailers, and offering rental holidays or reduced rents to help navigate through the crisis, and Retail NZ applauds those who are doing their best to help. However, we are hearing that some landlords are refusing to engage on the issue, and insisting that full rents remain payable as contracted before the Covid-19 crisis emerged. An refusal by landlords to negotiate will tip many retail businesses into insolvency, costing jobs and ultimately depriving landlords of their tenants.

“These are extraordinary circumstances, and we need to pull together as a nation to work through the crisis. Retail NZ is calling on landlords to engage constructively with those retailers who have been negatively impacted by Covid-19, and to work with them to find a solution that works for all parties. This may include a rent holiday, a temporary reduction in rents, and flexible payment terms.

“Landlords are not responsible for the collapse in sales that many retailers are recording, but they are in a position to help. The current low-interest rate environment should support them doing that.”

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Reserve Bank: RBNZ To Implement $30bn Large Scale Asset Purchase Programme Of NZ Govt Bonds

The Monetary Policy Committee (MPC) has decided to implement a Large Scale Asset Purchase programme (LSAP) of New Zealand government bonds. The negative economic implications of the coronavirus outbreak have continued to intensify. The Committee ... More>>

ALSO:

Elevate NZ: Venture Fund To Lift Productivity

The Government’s new $300 million venture capital fund - announced in last year’s Budget – is now open for business as the Elevate NZ Venture Fund. Finance Minister Grant Robertson says lifting New Zealand's productivity requires well-functioning ... More>>

ALSO:


COVID-19: Case Confirmed In NZ – Expert Reaction

After spreading across the globe for months, the first case of COVID-19 has been reported in New Zealand. The Ministry of Health says the risk of a community outbreak is low, due to their preparedness and the high awareness of the disease. The Science ... More>>

ALSO:

Agriculture: New Legislation To Boost Organics

New organics legislation will boost consumer confidence and help grow an innovative sector, says Food Safety Minister Damien O’Connor. “The Organics Product Bill, introduced to Parliament this week, aims to increase consumer confidence when purchasing ... More>>

ALSO:

Biodiversity Policy: Misinformation Circulating

Forest & Bird is concerned at misinformation circulating regarding a policy statement aimed at protecting New Zealand’s unique biodiversity. The National Policy Statement for Indigenous Biodiversity is being consulted on by the ... More>>

ALSO: