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Attention must switch from ‘distancing’ to ‘rent’, says Downey

“Almost all of the press, chat and activity these past few days has been about distancing when we should be all over rents,” said the Hospitality Union founder. 

“Less than a week today and another quarter’s rent is due. That’s on top of the unpaid arrears from the March quarter. Two weeks tomorrow is the day the locks get changed and landlords start to repossess premises, unless cash-strapped tenants pay half a year’s rent having been forced to close by government order for almost four months,” he said. 

“It’s an impossible situation for far too many of us”, added Downey, as he reiterated the urgency of government to extend the lease forfeiture moratorium beyond 30 June. 

“Government cannot leave us hanging like this. They must, they will, extend the lease forfeiture moratorium beyond 30 June. We just need them to announce it. They reacted quickly and effectively when they first brought in this essential measure back in March – 13 days from idea to UK law. There is already legislative provision to extend it, they know there’ll be a bloodbath if they don’t and some extra time will enable more deals to be done.” 

If government [did it] this week, “thousands more of us could be making plans to re-open rather than for redundancy and insolvency”. 

UK Hospitality chief executive, Kate Nicholls, added: “Rent is arguably the biggest threat to the future of the sector as finding a solution to the impasse, or indeed not finding one, is going to be make or break for some businesses. If an equitable solution is not forthcoming, some businesses simply are not going to be able to pay. 

“The confusion around social distancing measures is not helping, though. We need some clarity so businesses can begin to prepare to reopen and that includes getting confirmation of the required social distancing measures and that 4 July will indeed be the reopening date.”

Downey also insisted that it was “absolutely clear that government will have to relax the arbitrary 2 metre rule”. 

“There is no question they will. It’s just a matter of when they think it’s most politically expedient to announce and whether they make us go through the unnecessary charade of opening at 2 metre and then relaxing to 1 metre / 0 metre a few weeks later,” he said. 

“Whatever they decide to do and when, we will work through it. It’s an easy ask for an industry as resourceful as ours. But we can’t say the same for the end-of-month rent apocalypse. We won’t be able to manage our way around that with a tape measure and some perspex. Not a chance.”