Home » Economy » Starbucks landlords ‘astounded’ by company’s coronavirus rent reduction request
Starbucks landlords ‘astounded’ by company’s coronavirus rent reduction request
Starbucks readies partial store reopenings; Lord & Taylor plans to liquidate inventory
Fox Business Briefs: Starbucks plans to reopen 85 percent of U.S. cafes emphasizing mobile ordering, contact-less pickup and cashless payments; Lord & Taylor reportedly looking to liquidate all of its 38 department stores once retail locations can safely reopen.
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Starbucks’ retail chains are reaching out to landlords to renegotiate rental arrangements due to the “staggering economic cost” associated with the coronavirus pandemic, according to a statement issued by the company.
“Effective June 1 and for at least a period of 12 consecutive months, Starbucks will require concessions to support modified operations and adjustments to lease terms and base rent structures,” the letter distributed earlier this month said, which was signed by Starbucks Chief Operating Officer Roz Brewer. “This is the worst recession since the Great Depression and far more devastating than the global financial crisis.”
WHO STARTED STARBUCKS?
However, landlords throughout the country aren’t happy with the announcement.
San Clemente, Calif. Starbucks landlord Leon Brooks received a letter asking for at least a year’s reduction in rent, according to The Lewistown Tribune.
“I am highly disappointed, disgusted and angry,” he reportedly wrote back to the coffee giant. “Shame on you.”
LANDLORDS FUME AS STARBUCKS, OTHER CHAINS SEEK EXTENDED RENT CUTS
Brooks told the publication he hasn’t heard back from Starbucks yet – which has been a tenant for just over a year and has 19 years left on its lease – but he is prepared to refuse any of the company’s requests.
“We have a contract and we will enforce the terms of the contract,” Brooks said. “If they want to go into default, we will get our remedies from the court of law.”