The Cheesecake Factory says it will not be able to pay rent on its nearly 300 storefronts come April 1 due to the loss of income it has sustained during the coronavirus outbreak.
In a March 18 letter the company’s landlords, company chairman and CEO David Overton wrote: “Due to these extraordinary events, I am asking for your patience and, frankly, your help.”
“Unfortunately, I must let you know that The Cheesecake Factory and its affiliated restaurant concepts will not make any of their rent payments for the month of April2020,” he added.
On Monday, California-based company let investors know that it was tapping into a $90 million line of credit to increase its liquidity and stop construction on unopened restaurants, Eater reports. Additionally, 27 of the company’s restaurants have been temporarily closed since the onset of the pandemic and its stock has dropped by over half in the past month.
Restaurants all across the country have been forced to either shut down completely are switch to a take-out only model, as local and federal officials try to stop of the spread of COVID-19.
The Cheesecake Factory has over 38,000 employees making it one of the largest employers in the U.S.