The Cheesecake Factory said it can’t afford to pay rent for nearly 300 restaurants in April due to the fallout from the coronavirus pandemic.
Cheesecake Factory chairman and CEO David Overton told landlords on March 18 that a “severe decrease in restaurant traffic” triggered a significant “financial blow” during the CCP virus outbreak. A number of locations around the country were forced to shut down totally, while only some can serve delivery and takeout.
“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 said in the letter.
The Epoch Times refers to the novel coronavirus, which causes the disease COVID-19, as the CCP virus because the Chinese Communist Party’s coverup and mismanagement allowed the virus to spread throughout China before it was transmitted worldwide.
Cheesecake Factory has not responded to a request for comment.
“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. We are continuing to evaluate the implications of this situation on our business and we realize the impact this action will have on our landlords. We appreciate our landlords’ understanding given the exigency of the current situation,” the letter said.
The firm said that it will continue to follow the Centers for Disease Control and Prevention (CDC) guidelines and will closely monitor developments “in all the communities we serve.”
“We hope to resume normal operations as soon as reasonably possible. We commit to keeping you informed in furtherance of our long-standing business relationships,” the company wrote.