The sporting goods group Adidas continues to pay rent to private landlords of its branches regardless of the closings in the Corona crisis. “We have exempted them, they will receive their April rent as usual,” said CEO Kasper Rorsted of the “Frankfurter Allgemeine Zeitung” (Monday edition). Most of their own businesses would be rented by large property marketers and insurance funds. For the measure, the rental payments have been temporarily suspended, they “have shown mostly understanding”.
Rorsted reacted to the sharp criticism from politics about the procedure of the sporting goods manufacturer. According to him, the group can currently only do its business in three countries worldwide: “This means that almost all of our sales were discontinued in one fell swoop; if you take off online trading, we normally generate 60 percent of our sales in these markets, that’s easy path.”
Adidas applies for short-time work
Rorsted announced that Adidas would apply for short-time work for production, warehouses and employees in the self-operated stores this week. In the event of weeks of restrictions, the head of the company said: “This will lead to massive economic upheavals, much worse than in the 2008/2009 financial crisis.”
However, Adidas is not the only company to defer rental payments. Retail chains such as Deichmann, H&M, C&A, KiK and Takko have also stopped or are planning to make payments. The federal and state governments have ordered the retail sector to close largely due to the Corona crisis. Exceptions apply to the grocery and drug stores.
Numerous companies stop paying rent
The textile and fashion industry suffers massively from the effects of the closed branches because they can only bring their spring collections to customers in online retail. According to a report by “Capital” magazine, “at least half of the well-known chain stores are ceasing to pay rent for April”. If the closings lasted longer, the number will even increase.