Whilst the government has taken significant steps to help protect businesses from collapsing as a result of the current pandemic, it is evident that companies across the board are acutely aware that such protection cannot last forever.

The suspension of landlord rights to forfeit and the the ability of landlords to present a winding up petition both undoubtedly help tenants, but in both cases the rights are suspended only - rent (and other charges) continue to fall due and once suspensions are lifted, tenants need to be in a position to address the outstanding debt (and, if they don't, landlords almost certainly will).

The food and beverage industry has been hit hard by the pandemic.  For many, "popping to lunch" now means a walk to the kitchen, rather than our usual go-to lunchtime sandwich seller. So, despite its efforts to diversify and offer coffee and groceries online, the news that Pret A Manger has now turned to insolvency specialists to assist in its negotiations with landlords over payment of rent is unsurprising.  

It is understood that many tenants are using this short period of suspension of enforcement by landlords to try and negotiate new payment terms (including linking rent to turnover). The pressure is on to try and convince landlords to take a deal before their rights to forfeit and take debt recovery measures are reactivated in July.