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LETS GET DOWN TO BUSINESS.

Question :
If a retail business has shut down with no cashflow and cannot pay a commercial lease, what solutions are being considered by others?

Question submitted 30/03/20 @ 11:38am
Industry: Retailing
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  • Hey Quinovic TEam in Tauranga – there was a good discussion going on around this point in another question – link here – https://www.manaaki.io/forums/topic/we-are-negotiating-with-10-landlords-for-rent-due-on-our-retail-premises-what-deals-are-other-businesses-striking-with-regard-to-a-reduction-in-rent-at-this-time/

    I would also add that we are all in this together – and despite legal agreements – we need to sit down and work out how to move forward – if we cancelled all payments – if we fired all team members – we are in pretty terminal place – so we need to negotiate to find resolution going forward.

    Hi Team Quinovic Tauranga.

    One thing is incredibly important right now. Communication. If you can’t pay your commercial lease you need to start speaking with your landlord now. Conversations are going to be tough but no one can put their head in the sand and this is bigger than us all. What options would they consider? Rent relief, rent holiday, no rent etc but start talking now. You don’t have to come to a conclusion as everyone appears to be waiting to see what the government position is in the coming weeks – but start the dialogue.

    If you haven’t got cash flow right now, what does cash flow look like when you are up and trading? Covid gives you the cloud-cover to cut all costs, so that must be a matter of priority.

    Are you in discussion with suppliers? What are they doing to help you get through this? Can you be spending your time planning to have your business ready with activities and actions to stimulate engagement with your customers when you are back up and running? Depending on your business, are you talking with your customers and engaging them with other information, content or activities you can do remotely.

    It’s tough and it feels lonely but there will be options and solutions. You just need to keep talking and start jotting down ideas – good, bad and ugly – within that will be some solutions and opportunities.

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