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High Street

JD Sports to withhold quarterly rent amid Covid-19 lockdown

Sports fashion retailer JD Sports has announced it is withholding its quarterly rent in bid to mitigate the effects of the UK lockdown.

According to The Guardian, JD Sports has not paid the rent due for its 390 stores, and is reportedly in discussions with the next bill due in June.

It comes after Primark announced it was withholding its quarterly rent on closed stores last week (26 March), in order to negotiate a deal with landlords that could help mitigate financial losses amid Covid-19 pandemic.

The Guardian said the payment was meant to cover rent and service charges for a large majority of its UK estate for the next three months. Primark does not sell online, meaning sales will be wiped out by the store closures.

It comes after Primark owner Associated British Foods (ABF Foods) saw its shares dive in early trading on 16 March after it announced that the closure of its European stores due to coronavirus could leave a hole of £190m in sales.

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