Coronavirus in Germany: Adidas, H&M to stop paying rent over outbreak closures

Transport Minister Andreas Scheuer told the tabloid Bild he was “very disappointed” by Adidas’ decision, particularly after the company made big profits in recent years.

Alongside big property vendors, Adidas also rented space from private owners who would be left sitting on their expenses, said Scheuer.

Paying rent still required, says ministry

The Justice Ministry stressed that pandemic aid measures adopted by the Bundestag and regional states did not exonerate tenants from paying.

Under the new measures that were rushed through parliament this past week, landlords are now barred from terminating rental agreements if tenants haven’t paid rent for three months.

Landlords still have the right to ask courts to check tenants’ ability to pay, the ministry added.

Jan-Marco Luczak, legal policy spokesman for Chancellor Angela Merkel’s conservatives, warned that it had not been the intention of lawmakers for “financially-strong corporations” to forgo rent payments and balk on contracts.

“The decision of Adidas is wrong,” Luczak said.

An Adidas spokesman said its online sales generated only 15% of group earnings, but added this form of retailing had been “intensively” accelerated.

‘Unavoidable’: H&M

Swedish clothing giant H&M, which has 460 stores in Germany, told ARD’s Tagesschau that it intended to defer rents for three months “until the situation is clarified.”