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.READ MORE: Standoff Continues After Pursuit Ends In Palmdale, 1 Person Taken Into Custody
“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.READ MORE: Time Is Up For Lucky Lottery Winner To Claim $26M Prize
“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. “MORE NEWS: 2 LAPD Officers Face Disciplinary Hearings After Firing Less-Than-Lethal Projectiles At 2 Protesters Last Summer
The Calabasas-based company said they would repay rent payments “as soon as reasonably possible.”