Hospitality businesses need protection from landlord “retaliation”, UKHospitality claims
The trade body also urged the Government to ask landlords to use time to renegotiate terms with tenants.
UKHospitality has urged the government to protect businesses from “punitive” legal sanctions from commercial landlords.
The trade body called for an immediate extension of the forfeiture moratorium for 6 months and a widening of the scope to include broader debt enforcement measures, including winding-up orders, statutory demands and commercial rent arrears recovery.
UKH also urged the government to ask landlords to use time to renegotiate terms with tenants.
“Rather than use this as an opportunity to work with businesses to investigate rent deferrals or waivers, many landlords have instigated, or threatened to instigate, actions that will cripple businesses and lead to a further loss of jobs on a significant scale,” UKHospitality chief executive Kate Nicholls said.
Nicholls added that they have had reports of “excessive” interest payments applied to rent deferrals, as well as winding-up orders and bailiff action being threatened.
“We have also been alerted to instances where funds have been withdrawn from deposits with top-ups demanded in order to avoid lease terms being broken,” she added.
“This is an unprecedented medical, social and economic crisis for the country, with citizens pulling together. Millions of people’s livelihoods and job security depend on businesses working in harmony. Business as usual cannot apply at this stage. Yet, landlords are effectively signing a death sentence for many businesses that are just about keeping afloat.”
