Premier Investment refuses to pay rent after closing all retail stores

BILLIONAIRE retail mogul Solomon Lew has stood down 9000 staff and declared Premier Investments will not pay rent to landlords during a virus-necessitated shutdown of brands including Smiggle, Peter Alexander, Portmans and Just Jeans.

Premier yesterday announced all its retail outlets will close for a month and all Australian employees will be stood down without pay.

It is the latest in a mounting number of retailer shutdowns as a wary public stays away from the shops amid tightening quarantine restrictions. Government is still permitting trade at discretionary retailers but businesses have been forced to act as they increasingly feel the pinch, shutting doors, cutting guidance and shedding thousands of jobs.

Jewellery chain Lovisa and Athlete’s Foot owner Accent Group yesterday joined Mosaic Brands and Michael Hill Jewellers in temporarily shutting down Australian operations. Economists expect the unemployment rate to surge in the coming months, possibly as high as 11 per cent, as the economy suffers its first recession in nearly 30 years.

Premier Investments said 9000 people globally would be stood down after it took similar measures in New Zealand, the UK and Ireland.

“This is the hardest decision ever made by Premier – our team are our family and we want to do everything we can to keep them employed, but we believe that it is necessary and the right decision for them, their families, our customers, and the country,” Premier chief executive Mark McInnes said. The Premier Retail CEO will work from home without pay for the period of the shutdown until April 22.

In addition, the entire Just Group executive team have been stood down and have agreed to work from home when required with either no pay or reduced leave entitlements.

Premier’s non-executive directors have voluntarily decided to not receive any remuneration during this period. Additionally, Premier intends not to pay any rent globally for the duration of the shutdown.

It cited “extraordinary circumstances”, and the fact that 70 per cent of its Australia and New Zealand stores are already in holdover or have leases expiring in 2020.