Landlords had "little choice" in Blacks CVA
The British Property Federation raises concerns that "pain" in administration process is not shared equally
Landlords were given “very little choice” in the company voluntary
arrangement of Blacks Leisure according to the British Property Federation.
The administration process treated retailers differently which meant it was
not a “fair way of sharing the pain”.
On the eve of the first anniversary of the collapse of Woolworths, the
landlords involved in the outdoor clothing retailer, Blacks Leisure, agreed to
the CVA saving 4,000 jobs.
Liz Peace, chief executive of the British Property Federation, said: “We are
concerned that the favourable terms of the CVA do treat some retailers
differently from others. However, the landlords had very little choice in this
matter.”
“It’s understandable that banks should look at things from an investment
perspective rather than from a retailing one, but what this means is that CVAs
will only be a way of maximizing someone’s investment rather than be a fair way
of sharing the pain,” she added.
Further reading:
CVA approved for Blacks Leisure
