Retailer JD Sports Fashion has bemoaned “intransigent” landlords as it attempts to restructure leases during the coronavirus pandemic.
The company has seen profit plummet by more than two-thirds over the 26 weeks to 1 August, at £41.5m, which the company pinned on rising costs from its online business while stores were closed.
JD Sports acknowledged “well publicised” reports of the company withholding rent from landlords during the coronavirus lockdown.
“We firmly believe that it cannot be equitable to pay full contractual rents when there is no realistic prospect of any income from a store,” the company said.
“It remains our view that rents should reflect the basic economic principles of supply and demand, with market rents now falling significantly below those currently being demanded by outdated contractual principles.
“We have tentatively reached agreement with a number of landlords who acknowledge such principles, although others are more intransigent in their approach. Ultimately, it is in our mutual interest to reach a fair and equitable compromise.”
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