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Hospitality firms need rent cut to survive

Hospitality firms need rent cut to survive

A survey has found that 82% of hospitality businesses say they need a reduction in rent to survive the coming months after the Government imposed a 10 pm curfew on pubs, bars and restaurants and encouraged people to stay at home. A survey of companies operating more than 2,000 venues across the UK found that four in five do not believe their current terms of lease will allow them to continue trading. The number rises to 86% in London, where central areas remain thinly-populated compared to pre-coronavirus times.

"I don't think people fully appreciate the magnitude of the fallout that's still to come," said Tom Kidd, director and co-founder of Adventure Bar, which has nine bars around central London. "Up to 80% of the hospitality sector is locked in a Mexican stand-off when it comes to rent renegotiations.” The figures, compiled by commercial property advisers Cedar Dean, also reveal that more than 69% of hospitality and leisure companies are considering restructuring or insolvency, with the figure rising to 73% in London.

Read more: The Daily Telegraph

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