Edinburgh Woollen Mill (EWM) is reportedly inserting pandemic clauses into the new leases it is due to sign with landlords on Bonmarché stores – the retailer its owner Philip Day bought out of administration last year.
The clauses mean EWM can agree on new Bonmarché store leases without having to pay any rents upfront until the government-mandated lockdown is lifted and non-essential stores can reopen. The new initiative also means the company will be refunded any rent payments by landlords, should another pandemic hit in the future.
Bonmarche said landlords were keen to sign the leases right away, but “it wouldn’t be right for Bonmarche to sign leases with an immediate start date given that all the stores are shut,” said a spokesperson for the brand.
As a result, the company found some “legal language” which allows it to sign now, but it has ensured that the clauses don’t kick in until restrictions are lifted.
“Where we are currently signing new leases for Bonmarche stores, we have agreed with landlords a new pandemic clause,” a Bonmarche spokesperson said. “The upshot of the clause is that new leases will start only when the stores can reopen and restrictions due to coronavirus are lifted.”
