The Cheesecake Factory nixes rent dues as COVID-19 erases sales

A single of America’s most preferred dining places, The Cheesecake Manufacturing unit, reportedly are unable to manage April’s hire at any of its virtually 300 locations due to the fiscal pressure imposed by the coronavirus pandemic.

The Cheesecake Factory’s founder and CEO, David Overton, notified the company’s landlords of their incapability to pay out in a March 18 letter obtained by Eater.

Overton said the company’s profits took a strike as some dining places ended up compelled to close in accordance with authorities limitations that have been imposed throughout the region to avoid the spread of the virus.

Restaurants that have remained open are only in a position to give shipping and delivery and takeout products and services, he explained.

“The critical decrease in cafe visitors has seriously diminished our hard cash movement and inflicted a tremendous financial blow to our organization,” Overton wrote.

He extra: “Unfortunately, I have to enable you know that The Cheesecake Factory and its affiliated restaurant ideas will not make any of their rent payments for the thirty day period of April 2020.”

The Cheesecake Factory operates 294 dining places. It has locations in 39 states, the District of Columbia, Puerto Rico and Canada, in accordance to Eater.

The enterprise in 2019 acquired Fox Places to eat Principles.

Overton, in the letter, said the business hopes to resume hire payments “as before long as reasonably achievable.”

A firm spokesperson explained to Eater, “We have extremely sturdy, longstanding associations with our landlords. We are specific that with their partnership, we will be ready to get the job done alongside one another to temperature this storm in the acceptable method.”