JD Sports and Primark Take a Stand Against Financial Losses
- JD Sports withholds quarterly rent amid Covid-19 lockdown
- 390 stores affected
- Discussions ongoing for June’s rent payment
- Primark also withheld rent last week
- ABF Foods shares dive due to store closures
Sports fashion retailer JD Sports has decided to withhold its quarterly rent for its 390 stores in an attempt to mitigate the effects of the UK lockdown, as reported by The Guardian. This move follows Primark’s announcement last week (26 March) that it would also be withholding its quarterly rent on closed stores to negotiate a deal with landlords and help offset financial losses due to the Covid-19 pandemic. JD Sports has not paid the rent due, which covers rent and service charges for a large majority of its UK estate for the next three months. Primark, owned by Associated British Foods (ABF Foods), experienced a significant drop in share value after announcing the closure of its European stores could result in a £190m loss in sales.
Factuality Level: 8
Factuality Justification: The article provides accurate and relevant information about JD Sports withholding rent payments during the UK lockdown and mentions Primark’s similar actions. It also includes details on the financial impact of store closures on Primark due to the pandemic.
Noise Level: 3
Noise Justification: The article provides relevant information about JD Sports withholding rent payments and Primark’s previous announcement of doing the same. However, it lacks analysis or exploration of long-term trends or consequences, and does not offer actionable insights or new knowledge.
Financial Relevance: Yes
Financial Markets Impacted: JD Sports, Primark and their landlords
Financial Rating Justification: The article discusses the financial impact on retail companies JD Sports and Primark due to the COVID-19 pandemic, as well as potential negotiations with their landlords regarding rent payments.
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 text.
www.retailsector.co.uk 
