{"id":6037,"date":"2020-04-15T00:00:00","date_gmt":"2020-04-14T22:00:00","guid":{"rendered":"https:\/\/www.ludwigvandam.nl\/the-support-agreement-for-the-retail-sector-in-this-corona-crisis-dated-15-april-2020-mr-k-bastian\/"},"modified":"2023-07-07T17:43:33","modified_gmt":"2023-07-07T15:43:33","slug":"the-support-agreement-for-the-retail-sector-in-this-corona-crisis-dated-15-april-2020-mr-k-bastian","status":"publish","type":"post","link":"https:\/\/www.ludwigvandam.nl\/en\/the-support-agreement-for-the-retail-sector-in-this-corona-crisis-dated-15-april-2020-mr-k-bastian\/","title":{"rendered":"The support agreement for the Retail sector in this Corona crisis – dated 15 April 2020 – mr. K. Bastian"},"content":{"rendered":"

\n On April 10, 2020, the Ministry of Economic Affairs, together with a
\n number of landlords, retailers and banks have reached a support agreement with als
\n main goal to create a distribution of the ‘financial pain’ between
\n ‘retailers (and their shareholders), landlords, banks and government’.\n<\/p>\n

Signatories to the agreement are Detailhandel Nederland, INretail,
\n real estate organizations IVBN, Vastgoed Belang and VGO and the Ministry of
\n Economics. The banks are also taking part, through the members of the
\n commercial real estate committee of ABN AMRO, Deutsche Bank, ING and Rabobank.\n<\/p>\n

The Support Agreement builds on the joint call of the parties
\n March 24, 2020. The Support Agreement focuses on five pillars:\n<\/p>\n

\n – A short-term relief for the affected branches;<\/p>\n

– A safe store opening and agreements with retail entrepreneurs;<\/p>\n

– Transparency regarding the loss of turnover;\n<\/p>\n

– Possible relief in the long term;\n<\/p>\n

– Support from both the government and financiers.\n<\/p>\n

In short, the support agreement comes down to the following: if
\n retailers during the months of April to June 2020 at least 25%
\n experience loss of turnover, as a direct result of the Corona crisis, the
\n possibility to (partially) pay the rent payments for those months
\n apron.\n<\/p>\n

The suspension applies to a minimum of 50% of the rental price, with the creation
\n of lighting is paramount. Under the agreement, it is possible to
\n proceeding to a suspension of 75 to 100%, provided that this is the case in all
\n reasonableness is also possible for the lessor.\n<\/p>\n

The Support Agreement notes that customization is required for three retailers
\n is required, provided there is a constructive arrangement on the side
\n from the retailer. It concerns the following retailers:\n<\/p>\n

– International retailers;\n<\/p>\n

– Retailers with branches and formulas abroad;\n<\/p>\n

– Retailers with an international shareholder.\n<\/p>\n

In the period in which the rent may be suspended, the landlords promise
\n in turn that they will not resort to evictions. In
\n to what extent this agreement can really be regarded as an allowance
\n still the question, since an expulsion is in principle only possible
\n is after a rent arrears of three months.\n<\/p>\n

Against the promise that the landlords will not leave the shopkeepers
\n state the obligation of the shopkeepers to promote their business as much as possible
\n to try not to let the turnover drop too much
\n to walk.\n<\/p>\n

This maximum effort is even more important because a retailer only has one
\n can invoke the Support Agreement if there is full and
\n verifiable transparency with regard to both turnover and respect
\n of the loss of sales. In any case, the loss of turnover has
\n relates to the so-called ‘offline turnover’. Online turnover is according to it
\n Support agreement part of the customization.\n<\/p>\n

After those three months, each retailer, per lessor and\/or per location
\n looked at what the total loss of turnover has been and whether it is possible to recover the
\n to convert suspension into a ‘possible remission of
\n payment obligations’; therefore only after the actual impact
\n of the Corona crisis is clear. How things will work is
\n not yet clear; this will be discussed in more detail in May.\n<\/p>\n

To whom does the Support Agreement apply? That is not clear
\n from the agreement. The agreement does state the following: ‘Rental suspension
\n for as many Dutch retailers as possible who have a drop in turnover of
\n at least 25% in April-May-June 2020.’\n<\/p>\n

Who falls under the concept of ‘as many Dutch Retailers as possible’?
\n Looking at the text of the Support Agreement, it should be sufficient
\n that you are a retailer in the affected sector(s). So one would stand up
\n be able to state that the Support Agreement applies to all
\n affected retailers.\n<\/p>\n

In conclusion: the Support Agreement makes it possible for all affected stores
\n are possible due to the Corona crisis over the months of April to June
\n rent suspension from a minimum of 50% to a maximum of 100%. Appearance
\n At the end of May, a further evaluation and elaboration of follow-up agreements between
\n parties take place. Customization is possible ‘per retailer, per landlord
\n and\/or per location.’ With regard to the rent suspension percentage
\n taken into account for both parties (retailer and lessor).
\n proportionality as well as carrying capacity. It is only called upon
\n right to temporary suspension if (i) there is a
\n loss of turnover of at least 25% and (ii) this is demonstrably caused by
\n the corona crisis.\n<\/p>\n

Salient detail in the Support Agreement: it only concerns a ‘gentlemen’s
\n agreement’. Individual hosts who don’t want to grant a suspension
\n or retailers refusing to pay the rent due to the Corona crisis
\n therefore not bound by the Support Agreement.\n<\/p>\n

The Support Agreement does not say a word about the catering industry. Support agreement or not,
\n the rental problem remains one for all entrepreneurs in this Corona crisis
\n tricky point.\n<\/p>\n

Would you like more information about what a possible reasonable solution would be
\n may be in your sector or do you want to know whether you can legally rely on it
\n contingencies can be done? Then please contact us.\n<\/p>\n

Click here for the published article.<\/a><\/p>\n

 <\/p>\n

mr. K. Bastiaans \u2013 franchise lawyer\n<\/p>\n

\n Ludwig & Van Dam Franchise attorneys, franchise legal advice. Want
\nyou respond? Go to bastiaans@ludwigvandam.nl<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

On April 10, 2020, the Ministry of Economic Affairs, together with a number of landlords, retailers and banks, reached a support agreement.<\/p>\n","protected":false},"author":3,"featured_media":5048,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[343,358,214,342],"tags":[384,346,345,380,382,381,383,379,362],"class_list":["post-6037","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-dispute-settlement","category-individual-and-collective-advocacy","category-statements-current-affairs","category-tenancy-law-and-franchise","tag-gentlemens-agreement-en","tag-label10-en","tag-label5-en","tag-real-estate-sector","tag-rent-suspension","tag-retail-sector","tag-retailers","tag-support-agreement","tag-tag1-en"],"acf":[],"yoast_head":"\nThe support agreement for the Retail sector in this Corona crisis - dated 15 April 2020 - mr. 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