Majority of retailers are in rent arrears with at least one landlord

Survey found one in five landlords are refusing to engage demanding full payment of rent

Of the landlords willing to engage, the most common resolution offered was 50% off on periods of closure, or a deferred payment plan. Picture: Larry Cummins

Eighty per cent of retailers in Ireland are in rent arrears with at least one landlord a new survey has found.

A survey of 145 retailers, covering 1,650 retail outlets across the country carried out by Retail Excellence, also found that in 20% of cases the landlords are refusing to engage and are demanding full payment. 

The survey also found that two-thirds of rent arrears cases “without an appropriate resolution” involved institutional landlords and shopping centres. Respondents also said that, of the landlords willing to engage, the most common resolution offered was 50% off on periods of closure, or a deferred payment plan.

Retail Excellence Managing Director Duncan Graham said the survey provides a useful indication of what is happening in the market at present, as retailers struggle to get back on their feet after the body-blow of enforced closures due to the pandemic. 

"We welcome any engagement from landlords on rent arrears, and as such it is concerning to see one in five respondents say landlords are not engaging with them on rent due and are demanding full payment despite the fact that stores were shut for nine months.”

He said that it was ironic that institutional landlords and shopping centres appeared to represent the majority of cases where an appropriate resolution could not be found given their size. 

“Deals are being done across the board but in general, it seems it is the smaller, local landlords that are being reasonable and willing to compromise. Whereas in comparison, the majority of problem cases from this survey refer to bigger landlords.”