Retailers pay their suppliers. If they don't, their suppliers stop sending them their goods and they cease trading. Unfortunately for landlords of retail units, they are in the tricky situation that they cannot simply turn off the tap in the same way if their rent is not paid.
Where tenants propose a CVA, there can be a "de facto moratorium" against landlords enforcing, even for large companies. Where a CVA proposal is pending for a tenant, courts are more willing to grant temporary relief from forfeiture and put the winding-up process on hold (by adjourn winding-up petitions and granting validation orders).
Ed Cooke, who penned the article in the EG yesterday, is chief executive of Revo, a non-profit which supports individuals and businesses in the retail property and place-making sector. He makes the point that landlords consistently bear the brunt of retailer restructuring - and invites the actors to Revo's conference in September to discuss how to change the balance.
"In its notification to shareholders Debenhams confirmed: 'The CVA does not seek to compromise claims of any creditors other than certain landlords.' This provides further evidence, should we need it, that the process unfairly targets property owners."
https://www.egi.co.uk/news/978467/
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