David Leffler discusses businesses renegotiating bills due to COVID-19 in an article by International Business Times

David Leffler, a partner in Culhane Meadows’ New York office, was recently interviewed for an article by International Business Times which explores what businesses can do to renegotiate their bills in light of the pandemic.

Here are some excerpts from David’s interview:

When it comes to rent, one approach is to offer a percentage of gross revenues. For retailers, rent typically comes to 6% to 8% of sales, according to Hans Hansson, president and founder of Starboard Commercial real estate. With that in mind, companies can offer to pay that percent of current revenues, the latter defined as “whatever comes through the door,” he says. In fact, says Hansson, this strategy can be followed by any business looking for a break on office rent.

In many cases, landlords will require that small businesses prove they can’t pay the rent, a process that can involve a lot of paperwork. According to David Leffler, a partner with the Dallas-based law firm Culhane Meadows, it means filling out extensive documentation with the amount of cash reserves, revenues, government programs the business has applied to, and other information. “Landlords aren’t looking to give new terms to just anybody,” he says.

Hansson agrees. He points to a San Francisco tech firm that moved into office space three months ago after raising a “substantial” amount of money. When the company asked for a break on rent, he wanted to know why: “The business might have shifted, but they need to prove it,” he says. So Hannson asked for financial statements verifying the need–documents the owners wouldn’t provide. They didn’t get the break.

The complete article can be found here.


About Culhane MeadowsBig Law for the New Economy®
The largest woman-owned national full-service business law firm in the U.S., Culhane Meadows fields over 70 partners in ten major markets across the country. Uniquely structured, the firm’s Disruptive Law® business model gives attorneys greater work-life flexibility while delivering outstanding, partner-level legal services to major corporations and emerging companies across industry sectors more efficiently and cost-effectively than conventional law firms. Clients enjoy exceptional and highly-efficient legal services provided exclusively by partner-level attorneys with significant experience and training from large law firms or in-house legal departments of respected corporations. U.S. News & World Report has named Culhane Meadows among the country’s “Best Law Firms” in its 2014 through 2020 rankings and many of the firm’s partners are regularly recognized in Chambers, Super Lawyers, Best Lawyers and Martindale-Hubbell Peer Reviews.


The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.

*Culhane Meadows is ranked by U.S. News/Best Law Firms in Technology Law, Bankruptcy/Reorganization Law, and Information Technology Law. This website and the communications herein may be considered attorney advertising. Previous results are not a guarantee of future outcome. This website is for informational purposes only and does not constitute legal advice. The information herein is not intended to create an attorney-client or similar relationship. Please do not send us unsolicited confidential information. Whether you need legal services and which lawyer or law firm you select are important decisions that should not be based on this website alone.