Primark has reportedly agreed to pay a select group of landlords ahead of June’s quarterly rent day, but has asked some recipients to sign non-disclosure agreements (NDAs).
The fashion retailer is in talks with landlords ahead of reopening stores across England on June 15 and the next quarterly rent day of June 24, and is understood to have agreed payments in a number of cases.
However, according to The Times, Primark has asked some landlords across the 189 stores it operates in the UK who will receive payment to sign NDAs.
The fashion retailer reportedly withheld £33m worth of rent on the March quarterly rent day across its 376-strong international store estate.
Primark, which pays around £125m worth of rent per year under normal circumstances, said it was losing £650m of sales for every month its stores were closed.
One landlord told The Times that he was only paid when he signed an NDA that forbade him from disclosing the arrangement to fellow operators, while another said that the retailer agreed to pay 75% of rent for its June quarter and 50% of its previously agreed service charge.
A spokesperson for Primark declined to tell The Times how many of its UK landlords had received payment or been asked to sign NDAs, but highlighted that “confidentiality agreements are standard practice” in commercially sensitive business negotiations.
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