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Just Cuts Welcomes Changes To Rent Relief Measures For Salons

Just Cuts has welcomed the announcement from Minister of Justice Kris Faafoi around changes to improve rent relief measures, which provides much needed clarity and support for salon owners.

There are 28 Just Cuts salons in New Zealand, and 12 are currently closed under Alert Level 3.

CEO Amber Manning said Just Cuts has been advocating for landlords to recognise and respond to the challenges of leasing during extended periods of COVID-19 sanctions in New Zealand.

Changes to the commercial leases in the Property Act to enable rent relief will be retrospectively applied to 18th August 2021 –the first day of the current alert level restrictions.
The legislation is expected to be passed this week:

  • it will include a requirement to consider a commercial tenant’s loss of income in determining what a ‘fair proportion’ of rent relief would be
  • a requirement that the parties to a commercial lease with this implied clause must respond to each other within 10 working days of communication about the clause

Quotes attributable to Amber Manning, Just Cuts CEO

“Since the onset of COVID, Just Cuts advocated that Landlords must modify their rents and share some of the burden of reduced trade that our small family owned businesses are facing.”

“These measures are welcome news for our New Zealand salon Owners, and we will continue supporting them through the process of negotiating with landlords once the legislation is passed.”

“I would like to thank our business development team for continually advocating on behalf of our Owners, and the Franchise Association of New Zealand Team for their extensive support.”

“While it’s disappointing it’s taken this long for our Owners to access fair rent relief, this legislation is an important first step in accessing the support required as we learn to live with COVID.”

“Our Auckland salons in particular have dealt with incredibly difficult circumstances as a result of lockdown restrictions due to the reality of operating a close contact personal care business, as they cannot work from home and you can’t get your haircut online.”

“All our salon owners also still face uncertainty as to when the international borders will reopen, which would help alleviate the ongoing hairdresser shortage in New Zealand.”

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