Coronavirus: Adidas, H&M move to stop paying rent irks German finance minister

Finance Minister Olaf Scholz urges leading companies to refrain from taking rash action that could hurt property owners

The retailers’ move comes after the German government unveiled a major rescue package to protect companies and jobs from the economic impact of the pandemic

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Adidas has closed many stores in Germany, including the one above in Hamburg, amid falling sales due to the coronavirus outbreak. Photo: Reuters

Published: 9:33pm, 29 Mar 2020Updated: 9:33pm, 29 Mar 2020

Global retailers including Adidas and H&M sparked outrage in Germany on Sunday after announcing they planned to stop paying rent on stores that have been forced to close over the coronavirus outbreak.

Finance Minister Olaf Scholz urged leading companies to refrain from taking rash action that could hurt property owners.

“It’s irritating when large companies simply announce a halt on paying rent,” Scholz told the Bild daily, urging retailers to reach out to landlords to find solutions.

“Now is the time to work together,” he said.

H&M says its will not pay rent for roughly 460 stores closed in Germany. Photo: EPA/EFE

The retailers’ move comes after the German government unveiled a major rescue package to protect companies and jobs from the economic impact of the pandemic.

It includes a provision that temporarily shields tenants from being kicked out of their homes or business properties if they experience financial hardship over the coronavirus measures.