With Rent Due, Leases Don’t Give Retailers and Restaurants an Easy Out
Chains hope for government assistance that includes financial relief
Cheesecake Factory is among a number of retail and restaurant chains opting not to pay rent while stores are closed.
Getty Images
Key insights:
- Some retailers and restaurant chains are invoking force majeure.
- Most alternative agreements involve rent deferral.
- Potential litigation may get tied up in court.
For retailers and restaurants opting not to pay rent to their landlords, contractual language in their lease agreements is not likely to provide much relief, according to industry sources who asked for anonymity due to the sensitive nature of negotiations.
