Yahoo Finance Boots faces legal action from landlord in rent dispute
Boots faces a High Court dispute over its rent at one of the capital’s busiest shopping centres, in the latest sign of strain in relations between tenants and commercial landlords.
The owner of Westfield in Stratford has launched a legal claim against the high street chemist, which is owned by the global chain Walgreens Boots Alliance, court filings show.
Boots is understood to have angered landlords after refusing to pay rents at some sites during the nationwide lockdown, despite being classed as an essential retailer which has allowed it to continue trading throughout.
Due to a significant drop in shoppers to its stores and fall in sales, Boots is said to be adamant its outlets should be treated similarly to those which were forced to shut at the height of the lockdown.
In July, the firm said sales across all Boots UK outlets tumbled by 50pc in the three months to June, and by 70pc at its Boots Opticians stores. Announcing the figures, Boots revealed it would cut around 4,000 jobs after announcing an overhaul to its operations last year which it warned could see up to 200 stores closed.
Ministers have extended a ban on landlords taking debt enforcement action and issuing winding up petitions against commercial tenants unable to pay rent. The moratorium, which was due to end in September, will now prevent retailers and hospitality outlets being evicted by landlords until the end of the year. However, the rules do not prevent landlords from taking steps to force tenants to pay rent withheld because of the lockdown.
Businesses have welcomed the Government’s extension which could provide some respite amid the threat of a second nationwide lockdown. But the move is likely to sour relations between landlords and tenants even further, with property bosses growing increasingly frustrated that some tenants are exploiting the situation.
Boots and Westfield declined to comment.
