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02 Apr 2020 | 15:07

Richard Branson defers Virgin brand payments over coronavirus crisis

(Sharecast News) - Richard Branson will defer tens of millions of pounds in fees owed in brand licensing by Virgin branded companies in response to the coronavirus crisis. The Covid-19 pandemics is especially affecting travel and leisure companies and according to Sky News, Virgin Enterprises Limited is negotiating giving some businesses set up by Branson a payment holiday for the rest of the year.

Companies including Virgin Active, Virgin Atlantic Airways, Virgin Australia, Virgin Cruises and Virgin Holidays will not be required to pay fees to VEL.

This plan comes after Virgin Atlantic asked for financial support from the UK government in the for of credit facilities.

Branson also said in March that he was injecting $250m into Virgin-branded companies which had been hit by the pandemic, calling it "the most significant crisis the world has experienced in my lifetime".

"There are more than 70,000 people across 35 countries who work in Virgin companies, all of whom have been deeply affected by the pandemic in different ways," he wrote.

"Because many of our businesses are in industries like travel, leisure and wellness, they are in a massive battle to survive and save jobs.

The majority of the Virgin Atlantic fleet is grounded and thousands of staff were asked to take unpaid leave.
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