Major retailers in Germany say they plan to stop paying rent for stores that were told to close in order to slow the pandemic. Adidas is leading the charge, along with shoe chain Deichmann and Swedish clothing giant H&M.
A survey by news agency dpa has revealed plans by major German retail chains to suspend rental payments to owners of properties where their stores are located.
Many shops across Germany have been shut under regional state pandemic control decrees, but are receiving support from a new federal law that seeks to give tenants temporary relief.
Adidas spokesman Jan Runau told German ARD public television on Friday that the sports outfitter would temporarily suspend its rental payments at locations where “our shops are closed,” but that the company is in “close consultation” with its landlords.
Kai Warnecke, the head of the German Property Owners’ Federation, warned that defaults on payment unveiled by Bavaria-based Adidas must not set a precedent. “If so, it would be the end of the real estate market.”