Fitness giant Equinox has sent a letter to its landlords saying it won’t pay rent this month, sources told Page Six.
But the move comes as a top exec for Equinox’s deep-pocketed owner, Related, which has a $97 billion portfolio, said in a CNBC interview that wealthy tenants should all pay rent during the coronavirus crisis.
“I think what’s not OK is when you have large companies, whether it’s retail or corporate, that suddenly send blanket letters to their landlords and say, ‘We’re not going to pay the rent,’” Related CEO Jeff Blau said.
He also called out larger retailers — which he mentioned were not all Related tenants — saying, “Those tenants need to pay even though they are closed … This is not an excuse for people to not pay rent.”
The gym chain has also said it’s temporarily not paying vendors and furloughed staff. A frustrated freelancer alleged on Twitter that the gym owes her $8,000, but she was told after her tweet that she’ll be paid this month. A source told Page Six that freelancers are being paid, and the woman received the letter in error. Equinox did not respond to requests for comment.
A rep for Related told the Real Deal, “Equinox is an independent company, with multiple investors and we don’t make strategic or operational decisions for them.”
Journalist Yashar Ali posted on Twitter that Blau also told CNBC that Related would not accept excuses of nonpayment from well-capitalized tenants, although Equinox sent the same blanket letters.ui
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