Business owners left so stressed they’re taking sleeping pills after being threatened with legal action over non-payment of rent

By Lachlan Leeming, Local Democracy Reporter

Small businesses have been threatened with legal action over non-payment of rent during the coronavirus pandemic, leaving some tenants being prescribed sleeping pills due to the stress.

But their landlords say the letters sent to tenants are a routine matter and firms will not be evicted.

Business owners have spoken of having to be medicated after nationwide company Citibase, which manages the leasing of serviced offices at Gunnery House in Royal Arsenal, suspended services and threatened court action if tenants couldn’t pay rent.

One business was told services had been cut off and county court proceedings would start after its owner was unable to pay rent when income nosedived during the Government-enforced lockdown.

The letter from Citibase stated the firm would pursue outstanding costs, as well as court fees, interest and solicitors costs, if payment wasn’t received within a week.

There are understood to be more than 90 businesses in the building, with the majority being small companies ranging from single-employee law firms to yoga studios.

Citibase would not confirm how many businesses were threatened with legal action over unpaid rent, but it is understood to be in the dozens, while some of the companies are understood to have already declared bankruptcy.

One business owner, who requested anonymity, said: “Right now I’m so stressed I’ve been given sleeping pills by the doctors.

“My blood pressure is so high. As a customer-facing business we are losing money every day and to get no support from the landlord is just the final straw. I don’t even know where to start, all I want is just a little help until I can get back on my feet.”

Kemi Madumerem is the managing director of Compass Domiciliary and Supported Living, a learning disability day centre operating at the site.

She said business owners had been “left out of the loop” by estate agents and criticised the lack of communication to struggling companies at the site.

“We haven’t heard anything on what they can do to help – it was just a demand for rent and late charges,” she said.

She said the shock of the lockdown – which saw income for her customer-facing business immediately dry up – was compounded by a “lack of response apart from the demand for rent”.

“It’s one thing to come through this pandemic, but what about after – am I still going to be taken to court and have legal fees on top?” she said.

“I just find it remarkable they haven’t done anything to work with us through this very difficult time.”

In a statement, Citibase chief executive Steve Jude said the firm, which operates across the UK, was a “small business” itself, and was forced to furlough staff during the pandemic.

He said: “Whilst issuing payment reminders is part of normal operating procedure, we can assure all our customers that there will be no evictions during this difficult time.”

Mr Jude said any customers with concerns were encouraged to contact ceo@citibase.co.uk

Pictured top: Gunnery House in Royal Arsenal