Adidas and H&M not able to pay rents in Germany

Retailer giants Adidas and H&M have announced that they will not be able to pay their rents anymore across Germany due to the economic predicaments following the outbreak of Covid-19, the German media has reported.

Sports goods manufacturer Adidas has temporarily stopped paying rents for its shops in Germany. 

"It is true that Adidas, like many other companies, temporarily suspends rental payments where our stores are closed. We are in close contact with the relevant landlords," a spokesperson for the company was quoted as saying in the German media.

The fashion retailer H&M also no longer wants to pay rents for its stores in Germany. Following the outbreak of the coronavirus in the country, the company has had to shut down all of its 460 branches.

"That is why we also informed all our landlords in Germany last week that we will suspend payments until the situation has been clarified," an H&M spokesperson was quoted as saying by the German magazine Der Spiegel.

As the number of companies that cannot pay their rent due to the economic situation rapidly rises, the German government wants to prevent both landlords and tenants from suffering great losses. 

In line with an emergency law, tenants who fall behind with payments will have until the end of June 2022 to pay the outstanding rents.