The Cheesecake Factory, a massively popular chain restaurant, will not be making their rent payments in April.
The company informed its landlords in a letter on March 18 that the decline of cash flow “inflicted a tremendous financial blow” to the chain amid the global pandemic, and they will not be able to make rent on April 1, according to Eater.
“Due to these extraordinary events, I am asking for your patience, and frankly, your help. Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April 2020…we appreciate our landlords’ understanding given the exigency of the current situation,” wrote CEO David Overton.
“In these unprecedented times, there are many factors that are changing on a daily basis given governmental regulations and landlord decisions to close properties. We have to take both into consideration in terms of understanding the nature of our rent obligations and with respect to managing our financial position. We have very strong, longstanding relationships with our landlords. We are certain that with their partnership, we will be able to work together to weather this storm in the appropriate manner,” the company said in a statement.
The restaurant is also facing recent stock declines along with the reduction in business, leading to a possibility of permanent closure. Click here to see their letter to landlords.
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