Fast food chain SumoSalad has entered voluntary administration in a bid to negotiate a rent cut with Westfield operator Scentre Group.
According to the Australian Financial Review, the co-founder and CEO of SumoSalad Luke Baylis said he has tried over the past six months to negotiate cuts in leasing charges, but has been unsuccessful.
Baylis said SumoSalad is asking for “more realistic food court leases” as the company’s profitability has been affected by shopping centres dramatically increasing the number of food retailers.
He said having to pay “millions of dollars” to get out of the existing leases would send franchisees broke.
Entering voluntary administration would allow SumoSalad’s franchisees to move out without paying out the remainder of the lease.
“Placing the leasing entities into voluntary administration is the only way to protect our franchisees, and we are confident this will help us restructure our leasing entities in a manner that will create more favourable conditions for our franchisees,” he said.
ARA lobbying Government on low value GST legislation
The Australian Retailers Association (ARA) has today launched an advertising campaign calling on the Government to pass the low value GST legislation that will be in front of the Senate today.
Executive director Russell Zimmerman said the campaign isn’t about stopping Australians from purchasing from overseas retailers, but providing a level playing field for local stores.
“Australian retailers continually have to pay GST while their foreign counterparts do not, and local online and bricks-and-mortar retailers are sick of the constant delays in implementing this tax equality issue,” he said.
“The retail industry is already operating in a tough environment and any delay to this much-needed legislation will significantly affect employers and employees working in this sector.”
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The convenience stores leading the way on mobile innovation: From 7-Eleven’s fuel pricing app to Caltex’s new lunchtime ordering.
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