Andrews pleas for office rent reduction
Andrews & Partners, the Bristol-based estate agency, has written to its branch landlords requesting a rent reduction.
In a letter seen by The Negotiator, Andrews’ group chief executive Michael Robson has appealed to his landlords to explore either a 50% rent reduction of 12 months or a six-month rent-free period.
It states: "We are engaging with our landlords to look at ways of reducing our short-term obligations without prejudice to the commitments we have."
The letter adds that the agency has been forced to make over 200 staff redundant and rationalise its branch network in an attempt to reduce its cost base by over 50%.
Robson says the letter was sent to over 50 landlords as part of a tactical cost reduction programme implemented in September.
He says: "So far, we have had a response from about 50% of our landlords, mostly from the South East," he says.
"The South West landlords are starting to come in now. A number have agreed to significant rent reductions, and others have offered monthly rather than quarterly rental payments."
Robson claims that a handful of landlords have also offered to defer dilapidations and repair obligations.
He adds: "In total we’ll save around £100,000 in rent over the next 15 months and move 40% of leases to that of monthly payments."
Andrews was founded in 1946 and has around 52 branches throughout the South West and South East of England. It is owned by three trusts: Andrews Charitable Trust, Christian Book Promotion Trust and Christian Initiative Trust.