The trade body that represents leisure and hospitality businesses on Monday sounded the alarm about the near £500 million rent bill London’s under-pressure pubs and restaurants are expected to pay this week.
UK Hospitality calculates that bars and restaurants in central London have a collective quarterly rent bill of between £450 million and £500 million.
Payments are scheduled despite companies having no trade after being closed on government orders, except for takeaway food, due to the coronavirus outbreak.
While some landlords have agreed to rent holidays or deferrals, a number of businesses are still trying to negotiate deals.
Kate Nicholls, chief executive of UKHospitality, said: “The reality is that this is a critical week for bars and restaurants in London – and another incredibly difficult one.”
Nicholls said money for the rents isn't in the system and most businesses cannot pay.
Nicholls said: “We will be asking government to look at extending the legal moratorium on forfeiture to include commercial leases too. This will give us the time we need to negotiate and to focus on our teams. This remains the single biggest obstacle for the sector.”
