Retail chain refuses to pay rent in stand-off with retail landlords

I think you are missing the point.

Premier has decided unilaterally to move their suppliers to 180 days irrespective of what the agreed payment terms were.

If Myer decides to do the same thing, where their major supplier is Premier's major shareholder, then that may not result in the same outcome, which could be awkward in terms of "Optics".

Whether or not some completely different businesses have used the same tactic in the past is interesting, but not really relevant.

If Premier's suppliers have the right to remove their stock from Premier's store's, then they should probably consider this option carefully, given the constantly changing situation.

It would be difficult for Premier to argue to their suppliers that "we stood with you", when it was arguable that the opposite might be true.

 

Sounds like speculating on that stock that the buying consideration should go into the "Pending" file, but the selling consideration should go in the "Consider Carefully" file.

 

Government is looking to support 'Established Business' & 'their workers', unfortunately I don't think they have as much interest in who owns the building/land.

 

If you own residential property you are already "looked after" with generous policies like negative gearing and CGT exemptions .
I loved our tax cheque around July or August and used to came just in time to pay for the holidays.
If people don't want to use it when the economy takes a really bad turn , then why have it.
Be careful what you wish for, when this is all finished and its time to pay back a trillion dollars in debt , some one might take it away .

 

12% Drop today, maybe the word has gotten around?

 

If you're an older person with paid off IPs that you rely on for income and never intend to sell you're not looked after - depending on total income, you're quite possibly paying tax on income received. If you're in this position and haven't got other income streams, non-paying tenant(s) could really drop you in it - the bills and urgent repairs still have to be paid for. "I'm sorry, the tenant hasn't paid any rent for three months" is no excuse for not fixing the hot water.

 

Im an older person with paid off IPs , you can't take them with you when you pass away, so just sell one , and thank youself at how lucky you are to have IPs paid off.
Do you think 2 months age over a million workers would have "intended" to become unemployed or tens thousands of businesses would be forced to close down for a few months , and for many they wont survive, they did nothing wrong , they were forced to close to help save elderly lives.

 

Fortunate, yes. Lucky? To a small extent, much more to do with working hard and living relatively modestly (e.g. running a Honda Jazz when I could have afforded a BMW).

 

Maybe some of them did nothing wrong, but many took on too much debt, became overleveraged, failed to think about how to deal with risk and just went about the day-to-day operations in a happy-go-lucky fashion. Or to put it in a nicer way: they were too optimistic.

 

Are you discussing landlords, renters - or both?

 

Good question. Understand this is a property forum, but I actually was thinking about business owners of gyms, clubs, specialty stores, movie theaters etc. all those fancy places that rely on discretionary spending of an ever increasing population.

What I meant to say was that: in good times, the business generated healthy profits, which mainly lined the pockets of its owners who paid their hapless staffers peanuts. Now that a crisis has hit them, instead of keeping the business afloat using the profits they took, the owners furloughed all staff and asked the gov/taxpayers for handouts, while relaxing in their waterfront homes.

Of course, there are hard working entrepreneurs who are under financial stress personally, I'm not talking about them, they are the people that should be helped.

 

What I meant to say was that: in good times, the property generated healthy profits, which only lined the pockets of its owners who raised their tenants rent. Now that a crisis has hit them, instead of keeping themselves afloat using the profits they took or gains they have 'made', the owners asked the gov/taxpayers for handouts, while relaxing in their waterfront homes.

Of course, there are hard working property owners who are under financial stress personally, I'm not talking about them, they are the people that should be helped.

 

You selling at discount?

 

Oh I’m doing my part

 

No , We might do something similiar to to the GFC ,wait 12-18 months and pick up another really cheap property straight of a lender of last resort or a bank.
We dont need to sell because we knuckled down and paid them off , but if i spent the last 10 years Interest only , I probably would be crying into my double shot half almond milk latte about the cost of owning an investment properties.
The next year will almost wipe out last years profit on our cash cow whick is a short term rental
But we have had over 10 good years with the last 4 being really good.
Thats how life works .
You take the good years , but occasionally life throws you a curve ball.

 

What I say is that: in good times, the tenants generated healthy profits, which only lined the pockets of its business owners who raised their bank balances. Now that a crisis has hit them, instead of keeping themselves afloat using the profits they took or gains they have 'made', the business owners asked the gov/taxpayers for handouts, while relaxing in their waterfront homes.

Of course, there are hard working tenants who are under financial stress personally, I'm not talking about them, they are the people that should be helped.

 

Prima facie this is a breach of the third leg of section 254T of the Corporations Act.

A company must not pay a dividend unless:

(a) The company's assets exceed its liabilities immediately before the dividend is declared and the excess is sufficient for the payment of the dividend; and
(b) the payment of the dividend is fair and reasonable to the company's shareholders as a whole; and
(c) the payment of the dividend does not materially prejudice the company's ability to pay its creditors.

Lawyers could have a field day with this.

 

Some have no savings because they've used their profits to expand their business 5-fold and expand with more stores overseas. Poor souls.

 

They could include it in the accounts as a contingency for rental liability. The full value of property leases is included in the accounts nowadays due to complying with international accounting standards.