Pret a Manger will pay only 30% of its rent over the next quarter after it warned it does not have “sufficient funds” to pay the bill in full.
In a letter to landlords seen by the Evening Standard, chief executive Pano Christou warned landlords that the chain was in the “eye of the storm” and could face losing “tens of millions of pounds”.
A Pret spokesperson told the Evening Standard: “Although we are working hard to adapt Pret to the new retail environment, the coronavirus pandemic has massively affected our industry.
“Despite re-opening most of our shops, we are losing tens of millions of pounds each month and are not in a position to pay our June quarter rent in full. We are working with our landlords to find the best way forward.”
The news comes as there were reportedly growing fears of imminent job cuts at sandwich shop chains after a leaked video revealed a significant drop in sales.
According to BBC News, a video has been leaked showing Pret boss Pano Christou telling staff that an announcement would be made about the current “job situation” on 8 July after it was revealed its weekly revenue had dropped to just £3m – 15% of its normal income.