Penningtons has advised long-term client Aviva Investors and others on the impact of a number of major retail insolvencies including Fitness First, La Senza, Blacks Leisure, Allied Carpets and JJB. Our work has included a full review of the terms of these insolvency proposals governing both stores that were proposed to continue trading and those that were to be closed.
We advised on resisting demands that administrators should be allowed to occupy and trade rent-free while winding down businesses. Substantial sums of rent and service charge were recovered for the landlord in the process.
Administrators of retailers commonly allow a third party into occupation under a 'licence' arrangement and propose that the third party pay the ongoing sums due under the lease. These situations have to be dealt with carefully to avoid losing the right to object to the continued occupation of an unwanted new operator.
Through early involvement we have been able to secure amendments to proposed CVA terms to the advantage of landlord clients.