In another lifeline for UK businesses, the government has extended measures to prevent struggling companies from eviction over the summer.
The extension will last until September and is part of measures to assist local businesses in the wake of the coronavirus epidemic.
Leaders from the retail, hospitality and property sectors have worked together to develop a new code of practises which aim to provide clarity for businesses when discussing rental payments and to encourage best practice so that all parties are supported.
The code is voluntary for businesses and is relevant to all commercial leases held by businesses across all sectors, providing they have been impacted by the coronavirus pandemic.
Tenants are encouraged to continue paying full rent if they can and others are advised to simply pay what they can.
Pubs, cafes and restaurants, and the hospitality sector as a whole, have been one of the worst hit sectors during the coronavirus pandemic and this extension of the suspension of commercial tenant evictions will be a huge sigh of relief for them.
Communities Secretary, Rt Hon Robert Jenrick MP said:
“We are extending measures to protect those who are unable to pay rent from eviction so that businesses have the security they need to plan for their futures.
And in recognition of the strain that the virus has had on our high streets, our new code, backed by leaders across the industry, will help unlock conversations on rent and future payments whilst ensuring best practice is displayed across the board as we confront the challenges of this pandemic.”
Business Secretary Alok Sharma MP added:
“From clothes stores to our local book shop, we want as many high street businesses as possible to emerge from the pandemic, in the best position to bounce back.
By putting a stop to unreasonable evictions, these measures will protect jobs and provide further flexibility to our high street businesses that were trading successfully before the COVID-19 emergency, so they can focus on continuing to deliver for their customers and communities.”
Company closures during COVID-19
Despite a range of government funding and helpful policies, many companies have had no choice but to close due to the pandemic – either through lack of custom or they feel they are unable to reopen safely in line with social distancing measures. If you’re the director of one of these companies, we can help you.
As Licensed Insolvency Practitioners, we are able to help you close your company in the best way for you, and ensuring that you meet all your legal obligations.
If your company is insolvent, a popular solution is close the company through an insolvency process known as a Creditors’ Voluntary Liquidation (CVL). This process acknowledges your duties as a director to your creditors and does not come with any of the negative consequences associated with a compulsory liquidation.