So retailers just stop paying rent ...yep billions in profits but can't afford 1 months rent

[S2007S]

Amazing that companies that have made billions and billions in profits over decades can even pay a month's rent after stores are shut down for just 1 single month!!!!!!!!!


And gap is not the first to do this.



Gap stops paying rents, warns it might not have enough cash for operations
PUBLISHED THU, APR 23 20208:35 AM EDTUPDATED 36 MIN AGO


https://www.cnbc.com/2020/04/23/gap...h-for-operations-as-it-stops-paying-rent.html

 

[trader99]

Because they spent the billions to buyback their stocks so their executives can get rich off of the options! Very perverse system. Now they are all asking for a bailout.

It's actually worse than that. They issued bonds(i.e. borrow money since it's so cheap) and used the borrowed money to do buybacks. Now that their stocks have tanked and they still owe money and can't pay their rents.

 

[S2007S]

Because they spent the billions to buyback their stocks so their executives can get rich off of the options! Very perverse system. Now they are all asking for a bailout.

It's actually worse than that. They issued bonds(i.e. borrow money since it's so cheap) and used the borrowed money to do buybacks. Now that their stocks have tanked and they still owe money and can't pay their rents.

Just shows you that everything that has propped up this market has absolutely nothing to do with fundamentals and never will.

Facts state that since 2009 $7 fu$king trillion dollars has been used for stock buybacks!!!!

$$$$$7,000,000,000,000

Thats with a T

So if you really think about without these buybacks this market would be trading at least 50-60% lower today. Add in this crisis and markets would literally be trading down 80-90%!!!!!!

 

[Scataphagos]

So if you really think about without these buybacks this market would be trading at least 50-60% lower today. Add in this crisis and markets would literally be trading down 80-90%!!!!!!

We should not forget.... years ago stock buybacks were considered "market manipulation" (DUH!)... and were illegal.

 

[VEGASDESERT]

I look at it different...

Gap is saying why the hell should we pay rent when the mall is closed?

And I agree with them, you rent a space because people can come inside, if you
aren't letting people inside then the agreement is broken, no rent for you.

 

[S2007S]

I look at it different...

Gap is saying why the hell should we pay rent when the mall is closed?

And I agree with them, you rent a space because people can come inside, if you
aren't letting people inside then the agreement is broken, no rent for you.

Where when you sign a lease does it say that if you cant let people in you don't pay rent?

Does that mean since retailers aren't going to pay their rent that the landlords then shouldn't pay the taxes....

 

[southall]

I look at it different...

It's not the landlord stopping them.

If you rented/leased a car. And don't get to drive it much or even at all during these lockdowns. You don't get off the rental payments.

 

[Scataphagos]

It's not the landlord stopping them.

If you rented a car, during this lockdown. And don't get to drive it much or even at all. You don't get off the rental payments.

Weak/bad argument.

The car lease doesn't specify "use". You can drive every day or park in garage.... up to the leasee as to use.

The rent agreement is predicated upon "traffic" in the mall. Renters have a legit point, IMV.

 

[southall]

The rent agreement is predicated upon "traffic" in the mall. Renters have a legit point, IMV.

Since when, the lease doesnt garantee or specifiy any minimum level of traffic to your store.

 

[Scataphagos]

Since when, the lease doesnt garantee or specify any minimum level of traffic to your store.

You have a legal point, but not a good one.

The "intention" of the lease implies "access to public potential buyers". No such "intention" with auto lease.

The auto lease is for "use as you care to". No conditions upon the lessor.

As a more clear example.. let's say the mall landlord voluntarily closed it to foot traffic. Should the leasees of space still be required to pay rent?