Businesses struggle with rent: credit bureau

File image of real estate property purchasing

File: Real estate. Pixabay

JOHANNESBURG - Many businesses are not coping with rental payments and the situation is more grave in the restaurant, leisure and tourism industries.

This according to credit bureau, TPN.

The group warns that many retail businesses could be forced to close if the government doesn't relax Level 4 lockdown restrictions soon.

WATCH: COVID-19 | Rental space galore in Cape Town

New TPN research shows many businesses in the alcohol and leisure sectors will now fall further into arrears.

Last year, landlords offered rental relief but businesses are still struggling.

"If you go back to 2017 and 2018, the average number of liquidations per annum sits at about 1,800," TPN Credit Bureau's CEO Michelle Dickens said.

"It was already getting difficult in 2019 when that popped up to 2,000. In 2020 we had 300 liquidations and again, in the first five months of this year, we have had nearly 700. So liquidations continue to tick up and business rescues as well."

Source
eNCA

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