Canadian Tire wants to leave rents, and property taxes

Canadian Tire veut un congé de loyers et de taxes foncières

Canadian Tire rager of owners of shopping centres in Quebec. The company’s application for the majority of its signs a leave of absence of rent, operating expenses and property taxes for a period of six months as a result of the measures enacted to slow the COVID-19.

In a letter sent to the owners of buildings, on the 24th of march, which The Newspaper has obtained a copy, the retailer is responsible, inter alia, of the banners, Mark’s, Sports Experts and Atmosphere, request a leave of absence of rent from may 1, 2020.

Canadian Tire mentions, among others, in its letter signed by the vice-president, real estate, Dominique Boivin, that in exchange, ” in certain circumstances “, the company will ” extend by six months its current lease, at current rates “.

More owners of shopping centers in Quebec with which The Journal was discussed, who have preferred to silence their name in order not to harm their business relations, conceded to have “very badly received” this request, which has even been qualified as ” indecent “.

They have all stated that until now, Canadian Tire and its franchisees have paid their rents for the months of march and April. They did not, however, even if the cheques were to be paid in may.

This request of the parent based in Ontario and not the Canadian Tire store, one can read in the letter, since they are remaining open during the break in Quebec.

“Unacceptable “

“This is unacceptable. Canadian Tire has achieved revenues of more than $ 14 billion in 2019. I do not understand. She now asks us to pay for Hydro-Quebec and their taxes, ” complains a manager of shopping centres.

“Moreover, it is often a matter of leases signed for several years. The proposal to postpone these months to the end of their lease to the value of the dollar today is just not the road, ” he continued.

This last ensures be open to negotiate with these retailers. It advance have even agreed to postpone leases for a few months. The bill for operating costs and property taxes, however, has remained.

Other owners of commercial buildings are concerned that some of the franchisees, and Canadian Tire decide to bring back that six-month deferral on the table during the upcoming negotiations for the extension of their lease.

In Quebec, the commercial centres have been closed since last march 22. Last week, Ottawa has stressed wanting to address the issue of rents with the emergency Assistance program of Canada for the rent of trade.

The latter will provide loans to owners of commercial buildings who, in exchange, will agree to reduce, or even cancel retroactively the rents of their tenants for the months of April, may and June.

At the end of the day, yesterday, Canadian Tire and was assured that the rent for may will be honoured, preferring, however, limit his comments.

“We have very good relationships with our landlords/partners and we are confident that we will come to mutual arrangements,” noted the spokeswoman Cindy Hoffman.

What asked Canadian Tire to real estate owners

  • A leave of absence of rent, operating expenses and property taxes for a period of six months
  • A leave of absence from 1 may
  • This request is particular for the brands Mark’s, SportChek/ Sports Experts, Atmosphere, Party City, Pro Hockey Life/ Sports Rousseau/Hockey Experts, National Sports and PartSource
  • The company offers, ” in certain circumstances “, ” to extend for six months its current lease, at current rates “.
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