The Adidas and H&M groups sparked outrage in Germany. On Sunday, they announced their intention to stop paying rent for stores forced to close due to the coronavirus epidemic. German sports equipment maker Adidas, which made a net profit of nearly two billion euros in 2019, was hit hard by the collapse in sales in China and massive store closings.
"It is irritating that big companies are just announcing the end of rent payments," Finance Minister Olaf Scholz told Bild daily. German Transport Minister Andreas Scheuer admitted that he was "disappointed with Adidas". And German MEP Katarina Barley tweeted that she had bought her latest pair of Adidas sports shoes.
Show "understanding"
Adidas replied with the voice of its CEO, Kasper Rorsted, who said in the Monday edition of the daily Frankfurter Allgemeine Zeitung that most of the owners of the Adidas stores in Germany were "large real estate companies and business firms". 'assurance', who had 'mainly shown understanding' in the face of the freeze on rent payments. Adidas will continue to pay small private owners, he promised.
Swedish clothing giant H&M has also announced that it will not pay rent for its 460 closed stores in Germany either, adding that it has informed the owners and hopes to find "a mutually acceptable solution" soon. .
Government presented bailout
The announcements come as the German government unveiled a major bailout plan to protect businesses and jobs from economics from the pandemic. This plan includes a provision that temporarily protects tenants from the risk of being evicted from their home or business if they experience financial difficulties.
Justice Minister Christine Lambrecht has warned business leaders not to take advantage of it. "It is indecent and unacceptable for financially strong companies to stop paying their rents," she said on Saturday.
Other German media have reported that electronics retailers Saturn and MediaMarkt and one of Adidas' rivals Puma are also planning to stop paying their rents for the time being.
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