The Cheesecake Factory Could Close Down Due to Coronavirus
The Cheesecake company could become a casualty of the coronavirus.
The Cheesecake Factory at the Walden Galleria could possibly close down, due to the coronavirus pandemic. The company's CEO, David Overton, wrote a letter to its landlords, saying it can't pay rent for April, according to CNN.
"Please understand that we do not take this action or make this decision lightly, and while we hope to resume our rent payments as soon as reasonably possible, we simply cannot predict the extent or the duration of the current crisis." ~ David Overton, The Cheesecake Factory CEO, via CNN
With the forced-closing of sit-down restaurants here in New York, The Cheesecake Factory has seen a drastic decrease in income. The Walden Galleria restaurant is just one of 300 that could close, due to the economic stress caused by the coronavirus. The Cheesecake Factory company also owns other brands of restaurants, including North Italia, Flower Child and Culinary Dropout.
If The Cheesecake Factory closes, the permanent lay-offs would be significant. Most employees have been furloughed. The company employs 41,000 hour employees, according to Market Watch. The companies executives agreed to have their salaries cut by 20 percent. Executives have said that they plan to withhold April rent, so it will depends on how "understanding" their landlords are.
“We have to take both into consideration in terms of understanding the nature of our rent obligations and with respect to managing our financial position.” ~ Matthew Clark, The Cheesecake Factory chief financial officer via Market Watch