More than any other sector, hotels, cafes and restaurants have been particularly hit by the consequences of the coronavirus epidemic with a total closure for almost 2 months and particularly restrictive reopening conditions.
While the financial impact of this crisis cannot be ruled out, solutions exist in order to deal with and restart the business in the best conditions.
In this respect, requests for cancellation or extension of deadlines and the renegotiation of loans, which may have appeared as short-term solutions, should not appear as the only levers of recovery for professionals in the sector, who may on the contrary see in the crisis an opportunity to optimize their expenses and operating costs in order to rebuild cash flow and get back on the right foot.
A general audit of supplier contracts, commercial leases, but also the coverage by insurers of operating losses or the financial consequences of the epidemic should not be overlooked. As we have seen, the courts could, in certain cases, grant compensation claims from professionals in the sector and it is imperative to act within the time limit set (Paris Commercial Court — May 22, 2020, no. 2020/017022).
We also believe that an audit of the validity of the manager's bond commitments is imperative in order to assess the potential consequences of filing for bankruptcy or other major decisions that business leaders in the sector will have to make in the coming months.
Finally, the use of competitiveness agreements will thus make it possible to provide flexibility to companies in the sector by adapting working hours and remuneration arrangements in order to guarantee the employment of employees, associated with the success of the company. In the long term, the use of employee savings schemes, which are too often ignored in very small businesses, may also be considered.
EVERGREEN LAWYERS is committed to professionals in the sector in order to offer you affordable offers adapted to your needs. Do not hesitate to contact us.
