IWG has started requesting that UK landlords ask for a rent freeze to help soften the blow that the coronavirus is having on business. The letter sent to landlords outlines the changes that would help it absorb any revenue loss as workers are being told by the government to work from home if possible.
Additionally, the letter asks landlords for a three-month rent freeze starting in April and in return, it will extend its lease by three months to make up the income.
“We’ve not seen any immediate impact on our performance, but there will be as the crisis continues to escalate,” said Mark Dixon, CEO of IWG. “And it looks — we’re pretty certain that it’s going to escalate with the information that we have. And based on our experience in China, we can sort of calculate the effects even. But it’s too early, really, to give any exact considerations. But clearly, it will impact the business this year. It’s impacting, as I’ve said earlier, part of the revenues.”
Earlier this month, Dixon revealed that IWG temporarily closed 28 of its facilities in China for cleaning and that 90 spaces had been closed at some point.