Landlords Negotiations on Hold

  • Frasers Group to withhold rent payments until freely trading
  • Affects all stores including Sports Direct, House of Fraser, Evan Cycles and Game
  • Rent payments to move onto a monthly cycle

Mike Ashley’s Frasers Group has informed landlords that it will withhold rent payments until it can freely trade as a business, according to a letter seen by Estates Gazette. The Sports Direct owner is willing to negotiate but will not make payments until trade reaches the pre-agreed level. This proposal affects all group stores, including Sports Direct, House of Fraser, Evan Cycles, and Game. The company also plans to move rent payments forward onto a monthly cycle. In a statement earlier this year, the retailer issued a profit warning due to Covid-19’s significant disruption, expecting not to achieve its previous 5-15% EBITDA growth for the year ending April 2020 and will no longer provide guidance on its financial year.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about Frasers Group’s decision to withhold rent payments until it can freely trade as a business and their proposal to move all rent payments onto a monthly cycle. It also mentions the impact of Covid-19 on the group’s business and its previous guidance for EBITDA growth.
Noise Level: 3
Noise Justification: The article provides relevant information about Frasers Group’s decision to withhold rent payments due to the impact of Covid-19 on their business and their request for landlords to move all rent payments onto a monthly cycle. However, it lacks in-depth analysis or exploration of long-term trends or consequences, as well as evidence or actionable insights.
Financial Relevance: Yes
Financial Markets Impacted: Landlords and retail companies
Financial Rating Justification: This article discusses the decision of Frasers Group, a major retail company, to withhold rent payments from its landlords due to the impact of COVID-19 on its business operations. This directly affects the financial situation of both landlords and other retail companies in the group’s portfolio, potentially causing ripples in the financial markets.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.

Reported publicly: www.retailsector.co.uk