25/03/2009 - Landlords 'not to blame' for crisis
Landlords have called for retailers not hold them responsible if they fall into administration after paying their quarterly rent bill.
Retail experts have warned many businesses may topple after paying a large lump sum to their landlords at a time when they are already struggling to cope with a fall in consumer demand, tight credit conditions and rising costs.
Several retailers collapsed on Boxing Day when the last quarter rent was due and it is feared more will fall victim to the pressure.
However, landlords have said they are not to blame for the current difficulties in the market.
A consortium of firms led by Top Shop boss Sir Philip Green has approached landlords to negotiate for more flexible leases including deals allowing firms to pay monthly fees instead of a quarterly lump sum.
John Richards, chief executive of Hammerson, said: "Landlords are generally open-minded in discussions with their tenants on matters of affordability and short-term financial pressures."
A number of property owners and investors led by the British Property Federation have changed some leases to allow for monthly repayments and reducing service charges, but the British Retail Consortium has warned that the concessions do not go far enough.
Copyright © Press Association 2009
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