The Cheesecake Factory Notified Landlords Across the U.S. They Won’t Be Paying April Rent
Written by SOURCE on March 26, 2020
The Cheesecake Factory chairman and CEO David Overton penned a letter earlier this month asking for the understanding of its landlords across the country as the restaurant chain will not be able to make their rent payment on April 1, Eater LA reports.
“Due to these extraordinary events, I am asking for your patience and, frankly, your help. Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April 2020,” Overton wrote. “Please understand that we do not take this action or make this decision lightly, and while we hope to resume our rent payments as soon as reasonably possible, we simply cannot predict the extent or the duration of the current crisis.”
The coronavirus pandemic has throttled the restaurant industry, and The Cheesecake Factory is just one of many establishments crumbling under the weight of this global crisis. According to Eater LA, The Cheesecake Factory tried to increase its available cashflow in the meantime by accessing its $90 million credit line while announcing cut backs on upcoming development projects.
The news of The Cheesecake Factory’s inability to make rent by April 1 drew some allies.
Others were surprised that of all restaurant chains in the U.S., it was The Cheesecake Factory that was the first one to take such a bold step.
Now, The Cheesecake Factory will forever go down in history for something other than its War and Peace-sized menu or its guaranteed hour-long wait time to be seated.
