Lagardère Travel Retail targets variable-only rents for rest of 2020
Lagardère Travel Retail Chairman & CEO Dag Rasmussen has said that the company is aiming to move to variable-only rents for the rest of the year, adding that most airport partners are open to adapting contract structures amid the COVID-19 crisis.
Speaking on an investors call after Lagardère Group revealed Q1 results (click here for details), Rasmussen said: “All rents should be variable this year and all our teams are working on this plan with each and every landlord. The idea is that Minimum Annual Guarantees (MAGs) are there to protect landlords against bad operators. It’s not supposed to be life insurance for whatever happens. It’s our position that MAGs cannot apply in this situation.