Pret A Manger can only pay a third of its rent as 20,000 high street stores predicted to close this year
CAFE chain Pret A Manger can only pay a third of its rent after sales took a drastic hit during lockdown.
It comes as experts predict 20,000 stores will close this year in a further blow to the already struggling high street.
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Sales at Pret have plunged to around a fifth and as a result the struggling food outlet has offered landlords only a small portion of what it owes them.
Most of Pret's 434 UK outlets are placed near offices and in airports, serving up breakfast and lunch to workers and travellers.
But custom has dried up in many branches as the government asks those who can work from home to continue doing so for the foreseeable.
A video leaked on Monday suggested that Pret was preparing to axe jobs and now its chief executive Pano Christou has warned the chain is currently in the "eye of the storm".
The chain doesn't expect to break even until at least September.
Businesses in turmoil in 2019 and 2020
PRET A Manger is the latest in a long list of businesses to be facing trouble. In 2019 and so far in 2020 we've seen:
- Go Outdoors enter into administration putting 2,400 jobs at risk
- Jamie Oliver's "Jamie's Italian"chain go bust, alongside his Fifteen and Barbecoa restaurants
- Links of London go into administration putting 350 jobs at risk
- Marks and Spencer close 35 more stores as it pushes forward with plans to axe 145 shops across the UK
- Dozens of Monsoon and Accessorize stores close
- Struggling shoe shop Office has said it "could close shops" as part of restructuring plans
- Fears Pizza Express could be next to go into administration as it "brings in emergency advisers"
- Hairdressing chain Supercuts went into administration in October 2019 - putting 1,200 jobs and 220 salons at risk
- Maternity and baby retailer Mothercare collapsed into administration in November 2019 after 58 years on the high street, putting 2,500 jobs at risk
- Department store chain Beales went into administration in January 2020 with 23 shops and 1,052 jobs at risk
- High end fashion brand Ted Baker said it plans to axe 160 jobs in February 2020
- Mobile phone retailer Carphone Warehouse said in March 2020 that it'll close all 531 standalone stores in April
- Vintage furnishing and fashion firm Cath Kidston said it was closing all 60 high street stores in March 2020
- Fashion store Animal said in April 2020 it was closing all 21 of its UK stores
- Department store chain Debenhams fell into administration for the second time in April 2020
- P&O Ferries said in May 2020 that it was looking at making 1,100 workers redundant
- TUI warned in May 2020 that 8,000 jobs could be cut due to the ongoing coronavirus crisis
- British Airways said in May 2020 that it still plans on pressing ahead with 12,000 job cuts
- Oasis and Warehouse went into administration in May 2020, with 1,800 staff placed on furlough
- Shoe chain Aldo collapsed into administration in June 2020 with five stores permanently closed
- Victoria's Secrets plunged into administration in June 2020, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in June 2020, putting 82 stores at risk
In a letter to landlords seen by the , Mr Christou said: "We feel strongly that the Pret brand has every reason to believe it will thrive again, but we are currently in the eye of the storm."
The chain initially closed all UK branches back in March when the government ordered all non-essential stores to shut up shop to stop the spread of Covid-19.
Gradually, it began reopening branches for takeaway orders starting with cafes close to hospitals to cater for NHS staff. So far, it has reopened 320 of its 434 UK outlets.
There are around 500 Pret cafes around the world, all of which have taken a significant hit in sales as a result of the pandemic, causing it to call for emergency funding from lenders.
It is now trialling a coffee delivery service by teaming up with Deliveroo as a way of generating revenue.
It comes as the Centre for Retail Research predicts that 20,000 shops could close for good this year, resulting in 235,000 job losses in the retail sector.
The pandemic has so far seen the collapse of Cath Kidston and Laura Ashley, while Debenhams has also been forced to call in administrators for the second time in 12 months.
Oasis and Warehouse have also turned into online only retailers after being snapped up by Boohoo.com.
Frankie & Benny's has also announced that 125 diners won't reopen after lockdown.
Pubs, bars and restaurants are expected to run at a loss when they reopen from July 4 due to restrictions on customer numbers, which are necessary for social distancing.
Landlords and owners also fear that punters will stay away due to concerns over privacy - establishments are required to take contact details of customers to help the NHS' test and trace service control any further outbreaks.
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A Pret spokesperson told The Sun: "Although we are working hard to adapt Pret to the new retail environment, the coronavirus pandemic has massively affected our industry.
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"Despite reopening 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."