CALABASAS (CBSLA) — The Cheesecake Factory has told its landlords it will not be able to pay rent for the month of April due to economic strain amid coronavirus shutdowns.
According to the company, to comply with “emergency governmental restrictions” following state and local orders to close dining rooms, some restaurants have begun offering only take-out and delivery options, while some locations have closed their doors completely.
“The severe decrease in restaurant traffic has severely decreased our cash flow and inflicted a tremendous financial blow to our business,” Chairman, Founder, and CEO David Overton wrote in a letter addressed to the landlords.
“Due to these extraordinary events, I am asking for your patience and, frankly, your help. Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April 2020. “
The Calabasas-based company said they would repay rent payments “as soon as reasonably possible.”