| 17 Jun 2024
NTIA urges the Government to extend the Forfeiture Moratorium or Face Catastrophic impact on sector

MUMBAI: 77.6% Of Businesses surveyed across the Night Time Economy were over two quarters in rent arrears and suffering extreme financial hardship.

Commercial rent arrears are one of the key contributory factors that are placing businesses across the Night Time Economy under immense financial pressure.

The Government's answer to the situation is to continue to extend the forfeiture moratorium, in some way to possibly place landlords under pressure to come to the table and agree terms, but this is not the solution for either party.

Given the time constraints, businesses are desperate for the Government to extend the Moratorium which precludes commercial landlords from forfeiting commercial leases and evicting the tenant from non payment of rent until the 31st December, but there needs to be a long term solution or many will be compromised.

In a recent flash survey of over 400 Businesses by the NTIA & Sprout CRM has shown that 75.6% of Night Time Economy & Hospitality Businesses fear they will be out of business by Christmas.

Michael Kill, CEO of NTIA says:

“Given the time constraints, and the lack of a robust solution to the rising commercial rent issue, the extension of the Forfeiture Moratorium is now critical to the survival of many businesses”

“Owners are losing their business properties through no fault of their own, exposing themselves to personal guarantees, walking away with debts that they are unable to pay back. Thousands of viable businesses are being pushed over the edge, and with that there workforce. The Government must also consider that these important cultural and social hubs of communities will be lost forever.”

“Each stakeholder needs to share some of the financial burden, and with this recognise a Code of Conduct which is part voluntary, part mandatory to ensure that businesses, landlords and financial services act appropriately within the ongoing negotiations on rent and mortgages during this very difficult period”.

“The industry is crying out for a clear roadmap and exit strategy, allowing them to plan financially, and with this the ability to pay rent once the doors are back open”