Moroccan Franchise Sector Faces Bankruptcy Amid COVID-19 Recovery

"The structures most weakened by the Covid-19 crisis risk going bankrupt after the timid resumption of activities," reports L’Économiste which indicates that despite the total drop in activity during the lockdown, professionals in the sector have not failed to face their fixed costs.

The newspaper specifies that unlike the managers of shopping centers like Morocco Mall who have waived their rents for March, April and May, the landlords of commercial premises such as ONDA, ONCF and TangerMed continue to demand these rents for the confinement period.

In order to support these companies on the verge of bankruptcy, the newspaper mentions a number of proposals. These include the suspension of enforcement procedures for one year, the coverage of one third of the rent amount for the most affected sectors that have ceased their activities, the implementation by insurers of a rental indemnity and the possibility of staggering the payment of 2020 and 2021 taxes.