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Cheesecake Factory can't pay the rent


The Cheesecake Factory (NASDAQ:CAKEinformed landlords that it won’t be able to make rent payments due on April 1 for any of its storefronts, according to a report from Eater Los Angeles.

The restaurant company informed all of its landlords in a letter that a “severe decline” in restaurant traffic has decreased its cash flow and inflicted a tremendous financial blow to business levels.

“I am asking for your patience, and frankly, your help,” wrote CEO David Overton to the landlords on March 18.

It’s the kind of letter that is probably not uncommon and not a good sign for companies like Tanger Factory (NYSE:SKT), Simon Property (NYSE:SPG), Macerich (NYSE:MAC), Kimco (NYSE:KIM), EPR Properties (NYSE:EPR), Whitestone REIT (NYSE:WSR), Brixmor (NYSE:BRX), Realty Income (NYSE:O), Vereit (NYSE:VER) and Store Capital (NYSE:STOR).





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