2/3 OF RETAILERS FACE LEGAL ACTION IN JULY OVER £2.9BN IN UNPAID RENTS
- David Manklow
- Aug 10, 2021
- 1 min read
Two-thirds of retailers face legal action once the rent moratorium and furlough scheme is set to end in September 2021, as the sector sits on £2.9 billion (According to the BRC) worth of unpaid rents.
The UK government extended measures to prevent struggling companies from eviction over the summer. The extension, until the end of September, comes alongside further support to help local businesses plan for economic recovery following the coronavirus pandemic.
As non-essential retailers were closed due to previous government lockdowns, many have accrued huge debts that they are only just beginning to be able to pay.
A new survey by the BRC shows that two-thirds of retailers have been told by landlords that they would be subject to legal measures from September, once the moratorium on aggressive debt enforcement ends.
Furthermore, 80% of retailers said some landlords have given them less than a year to pay back rent arrears accrued during the pandemic.
If you’re looking for finance options to assist you through a difficult period then please do not hesitate to contact us at info@approved-finance.co.uk or call our finance broker team on 01908 429888
