Tag Archives: CVA

Does a company voluntary arrangement permanently vary the terms of a lease?

In this three part blog we highlight three recent court decisions concerning landlord rights and insolvency, which provide cautionary warnings and surprising twists.  The questions we consider are: Does a company voluntary arrangement (“CVA”) permanently vary the terms of a lease? Can a landlord be forced to accept a surrender of a lease? What are the … Continue Reading

CVA challenges by landlords – the latest news

The hair salon Regis announced recently that the company has entered administration. The news might not come as a surprise because the chain, prior to the company’s administration, was subject to a company voluntary arrangement (“CVA”) whose validity was challenged by landlords. The joint administrator of Regis commented: “trading challenges, coupled with the uncertainty caused by … Continue Reading

How do you manage property portfolio costs?

Retail remains a challenging market but there are a number of ways retailers can proactively manage their property portfolio costs to address those challenges. In our video partners Prew Lumley and John Alderton consider practical options for tenants when negotiating with landlords, including recent trends with Company Voluntary Arrangements. Thinking smart and being proactive may … Continue Reading

The court confirms that landlords have the right to forfeit a lease if its tenant enters a CVA. What practical impact does this have on landlord claims?

Can a CVA bind a landlord in respect of future rents? Is the landlord a creditor in respect of future rent? What about the right to forfeit; can a CVA modify that right? Is compromising rent under a CVA automatically unfair to landlords when other trade creditors are paid in full? These were some of … Continue Reading

BHS CVA: landlords win on penalties

Background BHS agreed a CVA with its creditors in March 2016. As with so many large, high-profile CVAs the key issues for BHS were the rental burdens arising out of their store network- they are known as “landlord CVAs”. The CVA followed a now common format where landlords were placed into different categories according to … Continue Reading

Government proposes legislation to enhance UK insolvency regime

On 26 August, the Government announced that it will be making changes to UK insolvency legislation. The changes are intended to support distressed companies and address issues highlighted by major company failures and include: the ability for all companies to apply for a moratorium a new insolvency process – the “restructuring plan”, enabling companies to cram … Continue Reading

Retail CVAs – update for landlords

Carpetright, the UK flooring company, has announced that it is considering a Company Voluntary Arrangement with the aim of “rationalising the company’s property portfolio in order to improve the long-term prospects of the business”.  This is expected to enable the business to close unprofitable shops and reduce their rent bill.  With 409 shops across the … Continue Reading

The woes of Toys R Us – will the “magical place” have its Christmas dreams come true?

“There’s a magical place, we’re on our way there, with toys in their millions, all under one roof – it’s called… Toys R Us!” The lyrics resonate with millions worldwide. The advert is as iconic as Coca Cola’s “Holidays Are Coming” commercial or the Sainsbury’s “Christmas is for sharing” World War 1 cinematic ad. Sadly, … Continue Reading

We wish you a profitable Christmas

Introduction With Christmas fast approaching and black Friday/Cyber Monday having passed, retailers will be hoping for a big spike in sales this December to add some sparkle to another challenging year. The uncertain political environment both domestic and abroad has had a visible impact on consumer confidence and, coupled with rising prices and a weak pound, is adding to … Continue Reading

To appoint, or not to appoint- that is the question!

The recent Court of Appeal case of JCAM Commercial Real Estate Property XV Limited v. Davis Haulage Limited [2017] EWCA Civ 267 has set out the importance of there being a settled intention to enter administration and indicated that this is a pre-requisite to an out of court appointment being validly made. The judge at first … Continue Reading

Retail CVAs – an unproven track record?

Only a month ago we were singing the praises of the CVA and calling them the saviour of the high street following the creditors’ approval of the BHS CVA. (See our earlier blog Move over Mary Portas, CVA’s are the real saviour of the High Street). In the last week, administrators were appointed to both BHS and … Continue Reading

UK Retail – Another Dressing Down?

Is UK Retail still in the doldrums? Christmas is a critical time for most retailers and can be the difference between life and death for many high street stores. With the economy’s recovery in its early stages and purse strings remaining tight, Christmas 2014 was never expected to be all tinsel and mistletoe. Christmas trading … Continue Reading
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