Get HCM digital magazine and ezines FREE
Sign up here ▸
Jobs   News   Features   Products   Magazine      Advertise  
NEWS
Time is 'running out' to save gyms from landlord legal actions
POSTED 18 Jun 2020 . BY Tom Walker
The protective measures to prevent legal action relating to rent were introduced in April, but will expire at the end of June Credit: Shutterstock/Flamingo Images
Thousands of gyms, restaurants and retail outlets in the UK will be going out of business if the government fails to extend protection from rent enforcement activity.

That is the message from three leading industry bodies, representing more than 80,000 members from across the leisure, hospitality and retail sectors.

ukactive, UK Hospitality and British Independent Retailers Association (BIRA) have joined forces to call for the government to immediately extend the Moratorium of Forfeiture until at least October 2020.

The move would offer tenants protection from landlords taking legal action against unpaid rent.

In April, industry bodies successfully lobbied the government to amend the Coronavirus Act to restrict tactics being adopted by landlords, who were insisting tenants – including gyms and leisure centres – pay rent that had been withheld as a result of COVID-19.

The protective measures introduced in April, however, will expire at the end of June.

This means gym operators and other tenants will be liable for rent payments they potentially cannot afford – forcing many to close down as they're threatened with legal action through statutory demand notices and winding-up orders.

The government is currently developing a new Code of Practice designed to support businesses – but timelines mean there will be insufficient time for it to influence the expected rent demands on 24 June.

Any business faced with a winding up order from its landlord would have its accounts frozen and be unable to pay staff, including those on furlough – meaning some would have to make redundancies.

ukactive, UK Hospitality and BIRA have now written to Secretary of State for Housing, Communities and Local Government, Robert Jenrick to highlight their concerns.

“We are deeply concerned that no progress has been made in extending the Moratorium of Forfeiture over the past week, leaving our members vulnerable to legal action, redundancies and, ultimately, permanent closure," said Huw Edwards, CEO of ukactive.

“Businesses across the nation are extremely vulnerable to legal action from landlords at a time when they remain legally closed and have had no income for the past 12 weeks.

“Our gyms and leisure facilities are ready to reopen safely when called upon, and to play a key part in restoring our communities’ health and wellbeing, but they must be allowed to get back on their feet first.

“We will continue to support the Government in developing a Code of Practice that is fit for purpose, but until then we must see urgent action to protect our sector from upcoming rent demands.”

Kate Nicholls, CEO of UKHospitality, added: “The stand-off over rent is perhaps the biggest threat to the future of the UK’s hospitality sector.

“The majority of businesses have had virtually no income for months, but are still being chased by a minority of landlords over rent.

“Some businesses have no way of paying, but are still being pushed right at the moment when we are trying to plan the reopening of the sector.

“We need to find a solution that benefits both landlords and tenants and enables us all to share in the pain that the crisis has caused. If we are going to find a workable solution then we need time; time to plan, reopen and negotiate.”
RELATED STORIES
  US gym market: research finds two-thirds plan to return, but Millennials and Gen Z may be hit by financial constraints


Two thirds (65 per cent) of gym and health club members in the US are planning on returning to their facility once lockdown measures allow it, according to a new study.
  Commercial landlords banned from aggressive rent collection


Commercial property landlords in the UK will no longer be able to take legal action against tenants who have not paid their rent due to the COVID-19 outbreak.
MORE NEWS
Treningshelse Holding snaps up another Norwegian fitness chain as it sets its sight on market leadership
Norwegian health club operator, Treningshelse Holding, which owns the Aktiv365 and Family Sports Club fitness chains, has acquired fellow Norwegian operator, Aktiv Trening.
Missed FIBO? Catch up with the HCM roundup
The HCM team were busy at the recent FIBO Global Fitness event in Cologne, Germany, distributing a special FIBO edition of HCM in support of the event as its global media partner.
Xplor kicks off international expansion for its Mariana Tek software with 1Rebel deal
Atlanta-based boutique fitness software company, Xplor Mariana Tek, has kicked off a push for international expansion.
US named world’s largest wellness economy, reaching US$1.8 trillion valuation
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion.
+ More news   

FEATURED SUPPLIERS

Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs. [more...]

Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn. [more...]
+ More featured suppliers  
COMPANY PROFILES
Orbit4

Orbit4 is the ultimate software solution for operators to manage their fitness facility. [more...]
miha bodytec

Founded in 2007 in Gersthofen, Germany, miha bodytec is the market-leading supplier of Electro Muscl [more...]
+ More profiles  
CATALOGUE GALLERY
 
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

21-21 Apr 2024

Below the Belt Melbourne Pedalthon

Sandown Racecourse , Springvale , Australia
22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
+ More diary  
 
ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
 
HCM
LEISURE OPPORTUNITIES
HEALTH CLUB HANDBOOK
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS
ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024
Get HCM digital magazine and ezines FREE
Sign up here ▸
Jobs    News   Products   Magazine
NEWS
Time is 'running out' to save gyms from landlord legal actions
POSTED 18 Jun 2020 . BY Tom Walker
The protective measures to prevent legal action relating to rent were introduced in April, but will expire at the end of June Credit: Shutterstock/Flamingo Images
Thousands of gyms, restaurants and retail outlets in the UK will be going out of business if the government fails to extend protection from rent enforcement activity.

That is the message from three leading industry bodies, representing more than 80,000 members from across the leisure, hospitality and retail sectors.

ukactive, UK Hospitality and British Independent Retailers Association (BIRA) have joined forces to call for the government to immediately extend the Moratorium of Forfeiture until at least October 2020.

The move would offer tenants protection from landlords taking legal action against unpaid rent.

In April, industry bodies successfully lobbied the government to amend the Coronavirus Act to restrict tactics being adopted by landlords, who were insisting tenants – including gyms and leisure centres – pay rent that had been withheld as a result of COVID-19.

The protective measures introduced in April, however, will expire at the end of June.

This means gym operators and other tenants will be liable for rent payments they potentially cannot afford – forcing many to close down as they're threatened with legal action through statutory demand notices and winding-up orders.

The government is currently developing a new Code of Practice designed to support businesses – but timelines mean there will be insufficient time for it to influence the expected rent demands on 24 June.

Any business faced with a winding up order from its landlord would have its accounts frozen and be unable to pay staff, including those on furlough – meaning some would have to make redundancies.

ukactive, UK Hospitality and BIRA have now written to Secretary of State for Housing, Communities and Local Government, Robert Jenrick to highlight their concerns.

“We are deeply concerned that no progress has been made in extending the Moratorium of Forfeiture over the past week, leaving our members vulnerable to legal action, redundancies and, ultimately, permanent closure," said Huw Edwards, CEO of ukactive.

“Businesses across the nation are extremely vulnerable to legal action from landlords at a time when they remain legally closed and have had no income for the past 12 weeks.

“Our gyms and leisure facilities are ready to reopen safely when called upon, and to play a key part in restoring our communities’ health and wellbeing, but they must be allowed to get back on their feet first.

“We will continue to support the Government in developing a Code of Practice that is fit for purpose, but until then we must see urgent action to protect our sector from upcoming rent demands.”

Kate Nicholls, CEO of UKHospitality, added: “The stand-off over rent is perhaps the biggest threat to the future of the UK’s hospitality sector.

“The majority of businesses have had virtually no income for months, but are still being chased by a minority of landlords over rent.

“Some businesses have no way of paying, but are still being pushed right at the moment when we are trying to plan the reopening of the sector.

“We need to find a solution that benefits both landlords and tenants and enables us all to share in the pain that the crisis has caused. If we are going to find a workable solution then we need time; time to plan, reopen and negotiate.”
RELATED STORIES
US gym market: research finds two-thirds plan to return, but Millennials and Gen Z may be hit by financial constraints


Two thirds (65 per cent) of gym and health club members in the US are planning on returning to their facility once lockdown measures allow it, according to a new study.
Commercial landlords banned from aggressive rent collection


Commercial property landlords in the UK will no longer be able to take legal action against tenants who have not paid their rent due to the COVID-19 outbreak.
MORE NEWS
Treningshelse Holding snaps up another Norwegian fitness chain as it sets its sight on market leadership
Norwegian health club operator, Treningshelse Holding, which owns the Aktiv365 and Family Sports Club fitness chains, has acquired fellow Norwegian operator, Aktiv Trening.
Missed FIBO? Catch up with the HCM roundup
The HCM team were busy at the recent FIBO Global Fitness event in Cologne, Germany, distributing a special FIBO edition of HCM in support of the event as its global media partner.
Xplor kicks off international expansion for its Mariana Tek software with 1Rebel deal
Atlanta-based boutique fitness software company, Xplor Mariana Tek, has kicked off a push for international expansion.
US named world’s largest wellness economy, reaching US$1.8 trillion valuation
The Global Wellness Institute (GWI) has released new data on the US’ wellness economy, valuing it at US$1.8 trillion.
Andy King launches The Conveners podcast to champion the pivot to wellbeing
The fitness sector’s pivot to active wellbeing is being discussed in a new weekly podcast, called The Conveners, and hosted by chair of GM Active and director of Miova, Andy King with industry veteran, John Oxley, as a guest presenter.
Basic-Fit trials corporate wellness drive across its Spanish clubs
Basic-Fit has signed up to trial the Wellhub network across its recently expanded Spanish network, giving access to subscribers and enabling them to use all 152 of its Spanish clubs.
+ More news   
 
FEATURED SUPPLIERS

Webinar: Building a new energy future for the leisure sector
As one of the most energy-intensive industries in the UK, leisure facilities face a critical challenge in balancing net zero goals, funding and increased costs. [more...]

Sibec EMEA to blend fitness with luxury at Fairmont Monte Carlo
Experience the pinnacle of fitness and luxury at the premier industry event, Sibec EMEA, set against the breathtaking backdrop of the Fairmont Monte Carlo this Autumn. [more...]
+ More featured suppliers  
COMPANY PROFILES
Orbit4

Orbit4 is the ultimate software solution for operators to manage their fitness facility. [more...]
+ More profiles  
CATALOGUE GALLERY
+ More catalogues  

DIRECTORY
+ More directory  
DIARY

 

21-21 Apr 2024

Below the Belt Melbourne Pedalthon

Sandown Racecourse , Springvale , Australia
22-24 Apr 2024

UK Aufguss Championships

Galgorm Resort, York,
+ More diary  
 


ADVERTISE . CONTACT US

Leisure Media
Tel: +44 (0)1462 431385

©Cybertrek 2024

ABOUT LEISURE MEDIA
LEISURE MEDIA MAGAZINES
LEISURE MEDIA HANDBOOKS
LEISURE MEDIA WEBSITES
LEISURE MEDIA PRODUCT SEARCH
PRINT SUBSCRIPTIONS
FREE DIGITAL SUBSCRIPTIONS