The British Retail Consortium has thrown down the gauntlet to landlords by demanding that retailers should be able to switch to monthly rent payments on existing leases, not just new ones.

The demand, in a letter obtained by Retail Week (right), comes as more of the sector’s biggest names came out to lend their support to the clamour to ditch the outdated system of quarterly rent payments in advance.

Carpetright founder Lord Harris and Kingfisher chief executive Ian Cheshire both told Retail Week this week that they strongly support the campaign.

In the BRC’s letter, sent on Wednesday by director-general Stephen Robertson to British Property Federation chief executive Liz Peace, the retail industry body called for a summit to discuss the hugely controversial issue ahead of the next quarterly rent date on September 29.

Robertson said all retailers, not just those in financial distress, should be able to pay monthly. “This represents a great opportunity for BPF members to show leader-ship in what is considered by the Government to be a slow moving industry,” he wrote.

Robertson’s letter is significant because, until now, the BPF has been quick to portray the two organisations as being shoulder to shoulder on the issue. But, although Robertson’s letter says “we applaud the move by BPF members to offer monthly payment terms on new leases”, it also makes clear that there is a still a gap to be bridged. 20,000 retailers have downloaded the BRC’s guide to negotiating monthly rents this year.

At the same time, Harris said the group of retailers formed to fight quarterly rents has grown to 40 and is working on a letter that will be sent to every major landlord. He added that while a full-scale revolt against paying rent in September is unlikely, he is confident that battle will be won eventually. He said: “I’m alongside Philip Green. We’ve not spoken to one company that doesn’t want to fight it. We’re not bullying the landlords, but we want to be able to talk to them, as we do in Europe.”

Cheshire waded into the debate. He said: “It’s completely ludicrous that, when retailers get into trouble, they’re offered deals, whereas those that present no risk pay quarterly. It’s outmoded.” He called on the industry to unite against the practice. “The campaign needs to be industry-wide. It’s important we stand together.”

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