So Cheesecake factory said today...

Q

quebert

Member
That due the Coronavirus affecting their business so massively they won`t be able to pay rent for any of their 250`ish locations this month, and depending on how long this lock-down lasts it could be multiple months. This whole pandemic is super serious, but they really announced they won`t be paying rent and it made me laugh. This a big chain, so like a lot of people had to see this internally, how the hell did such a statement get thumbs up to be released? I don`t go there very often, but there is one 2 blocks from my house and I would be SAD SAD if this stunt gets some locations shut down. Then I couldn`t go get some Adam`s Reeces Fudge cake cheese cake thing they got. :(

Is anyone here planning to announce to their mortgage company that until future notice you`ll no longer be paying your mortgage due to the pandemic?
 
That`s a time tested response to a company filing bankruptcy. They will then drop the losing stores and renegotiate the rent for the remaining stores. It`s a variation of the old... "I did not get paid so you are not going to get paid".
 
Fanny mae and Freddie Mac have already pretty much allow this. Their allowing their lenders to work with borrowers to figure out a long term solution up to modify mortgages for no payments up to 12 months. Alot of banks will follow suit.

It’s true alot of business will go under from this. Many will loose jobs. If not for banks working with borrowers ALOT of people will loose homes

Sad sad indeed...


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There was a large article here (Phoenix, AZ) where the ownership group/franchisees said they were trying to negotiate with the landlords to not pay rent so they could pay employees some sort of wage instead. They would then pay back rent when COVID-19 has passed and things were back to "normal". Let`s hope it`s that instead of financial difficulties. If so, I would likely patronize a place that put the priority on their employees first and the business second. I`ve never eaten there and likely wouldn`t, being diabetic and all. :)

Gordon
 
gordonjuan said:
There was a large article here (Phoenix, AZ) where the ownership group/franchisees said they were trying to negotiate with the landlords to not pay rent so they could pay employees some sort of wage instead. They would then pay back rent when COVID-19 has passed and things were back to "normal". Let`s hope it`s that instead of financial difficulties. If so, I would likely patronize a place that put the priority on their employees first and the business second. I`ve never eaten there and likely wouldn`t, being diabetic and all. :)

Gordon
Click to expand...

How are the landlords then supposed to pay their employees / bills / taxes / mortgages?
 
If tenants can’t pay then it snowballs up. Banks will probably lenient by government mandates and some kind of business bail out. And in all fairness they can probably take some financial hit.

A business like cheesecake factory goes down and thousands of people loose their job


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The foodservice industry never gets a bailout. Largest employment sector outside of government, yet people expect the foodservice industry to support charity and when things crash, the airlines and automakers get free government money but the foodservice industry gets nothing. If nothing else, I respect the balls of Cheesecake Factory for anticipating a bluff by the landlords on this. They can’t pay for now, but if things bounce back, they’ll be able to pay then. If you evict them and cheesecake goes bankrupt, think of how many other restaurant chains also will. In short, that landlord still won’t be getting paid because nobody is going to be signing a lease to take that vacant spot they have. The economic implications of this are huge.
 
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