CTH | How weak and tenuous does a corporate financial position need to be such
that being closed for one week means informing all nationwide landlords
of your inability to pay the rent next week? Consider this example:
CALIFORNIA
– The Cheesecake Factory, one of the most popular sit-down restaurant
chains in the country, says it will not be able to make upcoming rent
payments for any of its storefronts on April 1 because of significant
loss of income due to the coronavirus crisis.
[…]
Company chairman and CEO David Overton writes, “Due to these
extraordinary events, I am asking for your patience, and frankly, your
help.” He continues, “we appreciate our landlords’ understanding given
the exigency of the current situation.” The letter says that the company
hopes to resume paying rent as soon as possible.
[…] The Cheesecake Factory was founded in Beverly Hills
in 1972 and maintains its original location on Beverly Drive, with 39
locations in California. In total, it operates 294 restaurants in 39
states, plus the District of Columbia, Puerto Rico, and Toronto, Canada.
In 2019, the company also acquired Phoenix-based Fox Restaurants,
including North Italia, Flower Child, and The Henry. Most of the
company’s landlords are malls, including Simon and Westfield. (read more)
This is one small example; however, it is
an opportunity to imagine the beginning of a process were Blue team
corporations start to tell Red team financiers they are refusing to pay
their debts.
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