Retailers taking new leases are insisting on “pandemic clauses” that stipulate rent payments will be reduced should the shop be forced to close in a local lockdown.
Demand for such clauses is rising as the government’s local restrictions wreak fresh havoc on high streets. Wales yesterday closed shops selling non-essential goods for 17 days.
Amazon, which is seeking sites for a new chain of convenience stores and bookshops, along with Sports Direct, footwear chain Schuh and VF Corporation, which owns the Timberland and North Face brands, are said to be seeking to insert the clause into new leases.
The clauses are typically structured so that the rent is halved during a period of enforced closure. In instances where a lease is based on turnover, the