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Wed Mar 25, 2020, 08:22 PM

The Cheesecake Factory Tells Landlords Across the Country It Won't Be Able to Pay Rent on April 1

The Cheesecake Factory Tells Landlords Across the Country It Won’t Be Able to Pay Rent on April 1

The chain restaurant says closed dining rooms and “extraordinary events” are the reason for not paying rents

The Cheesecake Factory, one of the most popular sit-down restaurant chains in the country, says it will not be able to make upcoming rent payments for any of its storefronts on April 1 because of significant loss of income due to the coronavirus crisis.

The Calabasas Hills-based company informed all of its landlords in a letter dated March 18 (reproduced below) that a severe decline in restaurant traffic has decreased its cash flow and “inflicted a tremendous financial blow” to business. Cheesecake Factory’s affiliated restaurants, such as Rock Sugar and North Italia, will also not make April 1 rent payments.

Company chairman and CEO David Overton writes, “Due to these extraordinary events, I am asking for your patience, and frankly, your help.” He continues, “we appreciate our landlords’ understanding given the exigency of the current situation.” The letter says that the company hopes to resume paying rent as soon as possible.
In telling landlords that it will not able to pay rent, the Cheesecake Factory essentially confirms that it is in the same position that many independent restaurateurs currently find themselves in. In a statement to investors on March 23 — five days after the letter to landlords — the Cheesecake Factory announced that it would curtail development of unopened restaurants and tap into a $90 million credit line to increase its available cash. Since the outbreak of the coronavirus, the Cheesecake Factory has closed 27 locations across the country, and pivoted other locations to a takeout and delivery-only model — which it said just days ago was enabling the company to “operate sustainably at present” — and its stock price has fallen by more than 50 percent in the past month.

more at link
https://la.eater.com/2020/3/25/21194144/cheesecake-factory-rent-strike-chain-restaurant?utm_content=eater&utm_source=twitter+&utm_campaign=eater.socialflow&utm_medium=social+&__twitter_impression=true

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Arrow 19 replies Author Time Post
Reply The Cheesecake Factory Tells Landlords Across the Country It Won't Be Able to Pay Rent on April 1 (Original post)
TeamPooka Mar 25 OP
RT Atlanta Mar 25 #1
Botany Mar 25 #2
unblock Mar 25 #3
JHB Mar 25 #14
USALiberal Mar 25 #5
getagrip_already Mar 25 #4
ripcord Mar 25 #7
getagrip_already Mar 25 #9
ripcord Mar 25 #16
Mike Nelson Mar 25 #6
Demovictory9 Mar 25 #13
Sherman A1 Mar 25 #8
getagrip_already Mar 25 #10
Sherman A1 Mar 25 #11
A HERETIC I AM Mar 25 #15
Blue_true Mar 25 #17
Demovictory9 Mar 25 #12
Blue_true Mar 25 #18
Roland99 Mar 25 #19

Response to TeamPooka (Original post)

Wed Mar 25, 2020, 08:24 PM

1. "force majeure"

is going to get a lot of scrutiny under what are 'acts of god,' restrictions imposed by law, etc. there will be lotsa legal fights over this in the coming weeks/months/years.

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 08:24 PM

2. So I will have no place to go for crappy food?

Just saying'.

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Response to Botany (Reply #2)

Wed Mar 25, 2020, 08:28 PM

3. domino's delivers!

they're one of the few businesses that is going great during this mess.

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Response to unblock (Reply #3)

Wed Mar 25, 2020, 09:03 PM

14. That kind of thing happens when literally all of your business is delivery and take-out.

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Response to Botany (Reply #2)

Wed Mar 25, 2020, 08:32 PM

5. FFS, that is your take away? nt

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 08:29 PM

4. republican landlords are going to be selling a lot of restaurant equipment and furnishings.....

in the coming months. Bad luck for you, good luck for them.

They will sell you the furnishing back at a good price if they haven't sold them by the time you get some cash though. So you won't have to pay retail and start over.

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Response to getagrip_already (Reply #4)

Wed Mar 25, 2020, 08:33 PM

7. Why would you say only republicans are landlords?

Sounds rather ignorant to me, I'm having to work with my tenants to makes sure we can all get through this and you are making stupid statements.

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Response to ripcord (Reply #7)

Wed Mar 25, 2020, 08:49 PM

9. I didn't say only republicans were landlords....

What I said was republican landlords will, in essence, take delight in for foreclosing on businesses that don't pay rent exactly on schedule.

Lots of landlords will work with tenants to accommodate this crisis. The ones that won't will be wearing red hats.

I didn't mean to sweep you up in that post. Apologies.

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Response to getagrip_already (Reply #9)

Wed Mar 25, 2020, 09:35 PM

16. No problem

I'm a little testy right now, probably too much.

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 08:32 PM

6. I like that place...

... and know someone who works there.

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Response to Mike Nelson (Reply #6)

Wed Mar 25, 2020, 09:01 PM

13. ..

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 08:39 PM

8. But, don't they have a rainy day fund of at least 3-6 months of expenses?

We as peons are told that is what we should have at all times.

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Response to Sherman A1 (Reply #8)

Wed Mar 25, 2020, 08:52 PM

10. they do, but not on the books.....

That money goes offshore to be safe from the damned libs. Silly person.

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Response to getagrip_already (Reply #10)

Wed Mar 25, 2020, 08:59 PM

11. Well,

Then they can jolly well go get some cash and pay their bills, just like we have to do before leaving their restaurant.

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Response to getagrip_already (Reply #10)

Wed Mar 25, 2020, 09:04 PM

15. Oh, come on.

I'm not in the business, but from what I know about it, restaurants work on a fairly thin margin. They need butts in the seats.

Not every company has an account in the Caymans

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Response to A HERETIC I AM (Reply #15)

Wed Mar 25, 2020, 10:57 PM

17. Exactly right. nt

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 09:00 PM

12. a big company like that?

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Response to Demovictory9 (Reply #12)

Wed Mar 25, 2020, 11:00 PM

18. Maybe it is just me, but I read once that the company has been struggling

for a while. Clearly a massive shift in customer behavior that reduce business is the last thing that it needed.

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Response to TeamPooka (Original post)

Wed Mar 25, 2020, 11:24 PM

19. They had no cash buffer?

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