Last week (Thursday April 23), Business Secretary Alok Sharma announced that landlords and investors will be asked to work collaboratively with high street businesses unable to pay their bills during the coronavirus pandemic.
The measures – introduced under the Coronavirus Act, and included in the Corporate Insolvency and Governence Bill – means that aggressive debt recovery tactics will be temporarily banned and businesses will instead be asked to pay what they can afford. Landlords will also be prevented from using Commercial Rent Arrears Recovery (CRAR) unless they are owed 90 days of unpaid rent.
The objective is to safeguard the high street. However, the Government is also calling on tenants to pay rent where they can afford it, or what they can, in recognition of the strains also being felt by commercial landlords.
“Bira members have told us how frustrated they have been by the lack of support and help by many landlords,” comments Bira’s ceo Andrew Goodacre. “We are therefore pleased to see the Government take this action which will be a relief to many independent retailers who already have a lot of problems to deal with.
Since the outbreak of Covid-19, Bira has launched a dedicated coronavirus hub which is being updated every day, throughout the day, to help its members and the wider independent retail community through the crisis. Click here for the latest updates.
Top: The HQ of the British Independent Retailers Association (Bira).
