Debenhams have announced that they have called in KPMG, have issued a 3 year profit warning, lost two thirds of its share price and are considering CVA as an option. It seems as though the increase in minimum wages, less foot fall as more are people shopping online, an increase in rent and business rates is causing the perfect storm resulting in more high street “big names” announcing financial troubles.
Hot on the heels of House of Fraser, this new announcement will give Landlords greater concern raising the obvious questions such as “what can I do to protect my interest”, “can I get my property back”, who will be responsible for the rent and “who will pay the arears of rent?”
Following the House of Fraser announcement, Sarah Finch, a partner in our Property Litigation Department, wrote the following article on CVA’s:
If you have a queries in relation to tenant insolvency, please contact Sarah Finch on firstname.lastname@example.org