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AFP
March 30, 2020

Outrage in Germany as Adidas, H&M stop rent payments

World

AFP
March 30, 2020

FRANKFURT AM MAIN: Global retailers including Adidas and H&M sparked outrage in Germany on Sunday after announcing they planned to stop paying rent on stores that have been forced to close over the coronavirus outbreak.

Finance Minister Olaf Scholz urged leading companies to refrain from taking rash action that could hurt property owners.

"It's irritating when large companies simply announce a halt on paying rent," Scholz told the Bild daily, urging retailers to reach out to landlords to find solutions. "Now is the time to work together," he said.

The retailers´ move comes after the German government unveiled a major rescue package to protect companies and jobs from the economic impact of the pandemic. It includes a provision that temporarily shields tenants from being kicked out of their homes or business properties if they experience financial hardship over the coronavirus measures.

But Justice Minister Christine Lambrecht warned company bosses not to take advantage. "It is indecent and unacceptable if financially strong firms now just stop paying their rents," she said in Berlin on Saturday.

German sportswear maker Adidas, which made a net profit of nearly two billion euros ($2.2 billion) in 2019, has been hard hit by a slump in Chinese sales and massive store closures. The Bavarian company, one of Germany´s best-known brands, told DPA news agency that it was "temporarily suspending rental payments, just like many other companies".