Kingfisher pushes for fair deal on rents
Published: 15 December 2008
DIY giant joins the ranks of retailers pushing landlords for better payment deals and elimination of quarterly rents.
Kingfisher will make an appeal to landlords requesting monthly payments and fair rent terms for all retailers.
Like many businesses, the B&Q owner pays its rent in advance on a three-month basis, costing an estimated £75m. Kingfisher is said to be concerned that its cash is being used to prop up weaker rivals as retailers who have run into financial trouble have agreed monthly rents, while others are forced to stick with traditional quarterly payments.
The retailer also believes the new payment structure could benefit consumers further by freeing up cash flow to help fund price cuts.
Other retailers, including furniture store Land of Leather and Focus DIY have negotiated monthly payments on a number of their stores. MFI also requested a three-month payment holiday before it went into administration – unfortunately this was unable to prevent its collapse.
The news follows an agreement last month by seven major landlords - British Land, Land Securities, Liberty International, Legal and General, Prupim, Aviva and Westfield – to allow small retailers with no more than three stores to pay rent monthly, provided they submit funds by direct debit.