March 26, 2020 / 4:31 PM / 8 days ago

Italian travel caterer Autogrill in talks to cut rents - source

MILAN, March 26 (Reuters) - Italian travel caterer Autogrill is in talks with airports, motorway operators and other landlords around the world to cut fixed rents, a source close to the company said, as the group faces falling sales due to the coronavirus outbreak.

The Milan-based group - which operates restaurants at airports, motorways and rail stations - said on March 12 that the virus had reduced its revenue by 25 million-30 million euros ($27.5-33 million) from the beginning of the year to the end of the first week of March.

“There are ongoing negotiations with all channels and markets where the group works, with the aim of either cutting the fixed part of rents or making them variable and linked to sales,” the source said.

According to Autogrill’s latest balance sheet, the group paid 983 million euros last year for leases, rentals, concessions and royalties. Fixed costs for rents are an undisclosed item. ($1 = 0.9080 euros) (Reporting by Francesca Landini, editing by Giulia Segreti)

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