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KSA Group, who own this site, will help you to fix problems in your business. We won’t charge for any initial advice or face to face meetings. We speak in English. We will save you money and your precious time.   However, we do advise that you have a look through our guides and options so you can have an idea about what is possible for you, given your current situation.

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A collapse into insolvency for Former Bear Stearns London HQ

in News Property and Real Estate

The Chinese owner of 5 Churchill Place in Canary Wharf, watched the sites management company collapse into insolvency proceedings, calling in administrators; FTI Consulting.The 319,000 square foot, 12-storey high building was once occupied by Bearn Stearns, one of the investment banking casualties of the 2008 banking crisis and then later by JP Morgan. Cheung Kei Group, a Chinese property developer, had purchased the building in 2017 for the reported sum of £270m. Prior to this it was owned by a vehicle controlled by businessman Wafic Said and prior that, Canary Wharf Group.With this occurance, questions are likely to arise about the value for commercial real estate, post COVID, along with the specific future that may be in store for Canary Wharf office blocks.One property insider said the objective of the process was that both the property manager and asset manager remained in place to ensure the smooth running of the site. BNP Paribas is understood to hold the former role, with JLL holding the latter.Sky News report more.

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A collapse into insolvency for Former Bear Stearns London HQ

A landlord’s and tenant’s guide to commercial rent arrears recovery (CRAR)

in News Property and Real Estate Retail Winding Up Petition by HMRC or Other Creditor – What is the Procedure?

For the better part of 250 years, landlords enjoyed the right to claim ‘distress’ for unpaid rent – meaning that they could seize (distrain) and sell their tenants’ goods to recoup the loss of earnings.The Rent Act 1977 stripped this right from residential landlords1, but commercial landlords continued to be able to exercise distraint until April 2014, when distress laws were replaced with the commercial rent arrears recovery (CRAR) process2, 3. So what exactly is CRAR? Like most archaic UK legislation, distress law was unnecessarily complicated and, many felt, rather unfair. The CRAR rules that supersede them are intended to be simpler and more balanced, with a greater focus on tenants’ rights than their predecessors.CRAR still allows a landlord to collect overdue rent without the need for a court order; however, it applies only to commercial tenancies, and the tenancy must be subject to a written lease. It can only be used to recover rent and any interest and/or VAT payable under the terms of the lease. Landlords: enacting the CRAR procedure Before claiming unpaid rent from a commercial tenant, you must remember the following:The arrears must be at least seven days’ worth or more at the time the notice is served and at the time of enforcement You do not have the right to seize your tenant’s goods yourself; they can only be seized by a certified enforcement agentOnce you have found an authorised enforcement agent, you will need to fill out a Warrant of Control form to enable them to begin enforcement action. The enforcement agent will then take over the process, issuing a seven day notice to your tenant in the first instance.If the rent remains unpaid at the time of enforcement, the agent will enter the property and take control of certain goods located thereon to be sold at public auction. Tenants: your rights under CRAR Firstly, you must remember that a notice of enforcement binds goods to remain on the property, meaning you cannot sell or remove them. You can, however, delay enforcement by applying to court for a delay of execution or a set aside.It is possible to enter a controlled goods agreement in order to repay what you owe over time. Under such an agreement, the goods will remain on the premises, but your landlord’s enforcement agent will be able to remove them if you default on your agreed repayments.If goods are taken, the enforcement agent must provide you with an inventory of everything seized as specified by section 33 of the Taking Control of Goods Regulations 2013.If your lease has expired, your landlord can only use the CRAR process if:the lease ended within the last six months; the lease did not end by forfeiture; the rent was owed by you at the time the lease ended; you still possess some of the goods formerly located on the premises; you occupy the goods under a commercial lease; and your old landlords was, at the time the lease ended, entitled to immediate reversionBeing unable to pay debts, such as commercial rent, when they become due is a warning sign of insolvency. If this described your company’s situation, it is highly recommended that you seek insolvency or turnaround advice from a professional firm.References1. Rent Act 1977, s 147(1)2. Tribunals, Courts and Enforcement Act 2007, s 713. The Taking Control of Goods Regulations 2013, SI 2013/1894

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A landlord’s and tenant’s guide to commercial rent arrears recovery (CRAR)

Landlords can aggressively collect rent again

in News Property and Real Estate

Legislation had been enacted that stopped landlords forfeiting leases, issuing petitions or statutory demands where rent has not been paid due to Coronavirus.  This protection has now expired as of the 25th March 2022.The government has now passed the Commercial Rent (Coronavirus) Act 2022  which in effect removes all restrictions on landlords to recover their rent arrears.  However, companies that were forced to close due to the pandemic i.e. restaurants, pubs and gyms are eligible to enter into a legally binding arbitration process where they have not been able to reach agreement. This will resolve disputes about certain pandemic-related rent debt and should help the market return to normal as quickly as possible.  It should be noted that their is a window of 6 months for the arbitration to be completed.The Government said the majority of commercial landlords had shown “flexibility, understanding and commitment to protect businesses during an exceptionally challenging time”.The British Property Federation have said that the inability of them to collect rent had "“undermined the UK’s attractiveness” as a place to invest in property and development, which could undermine the recovery.Melanie Leech, chief executive of the BPF, accused “large, financially sophisticated and well-capitalised businesses” of abusing the moratorium by withholding rent to improve their liquidity.   She added that income from more robust businesses was essential so that the landlords could extend help to more vulnerable tenants like independent traders and boutique retailers.

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Landlords can aggressively collect rent again

Landlords Settle Case Against New Look’s CVA Before Court of Appeal

in News Property and Real Estate Retail What is a CVA (Company Voluntary Arrangement)?

3 March 2022New Look's landlords have just announced that they have settled with the company on the day before a crucial hearing at the Court of Appeal.17 May 2021New Look Landlords have been granted leave to appeal to the Supreme Court over their treatment in the CVA.Yet again the High Court has upheld the power of the CVA mechanism as a way of ensuring that a company can survive if the majority of its creditors (by value) agree to allow it time to get back on its feet.  Landlords feel that it is unfair but if it is not to be the creditors who else?  A panel of "experts"?  A quango?  The Government?Landlords complained that the switch to turnover rent “fundamentally rewrites” leasing agreements.  Unfortunately, when a company becomes insolvent and, in the case of administration, all contracts are "rewritten".There is a shift in the balance of power between landlords and tenants given the loss of footfall on the High Street and the rise of online shopping recently.  However, if everyone rushes back to the shops, post pandemic, maybe the landlords will be able to take a share on the increased turnover?17 March 2021It has been reported that New Look has entered a High Court battle with two of its landlords; British Land and Land Securities, over its proposed restructuring plans.In total, there were four landlords who challenged the CVA which involved switching stores to turnover based rents.The argument is that switching to turnover rents ‘’fundamentally rewrites’’ leasing agreements and deems the payments of arrears as ‘’unfair’’.10th November 2020New Look announce completion of its refinancing scheme which included a debt-for-equity swap to reduce debt from £500m to £100m and a £40m cash injection.The refinancing scheme was first mentioned in August, at the same time as its (now approved) CVA was first announced.CEO, Nigel Oddy said: “I would like to thank our banks, bondholders, landlords and creditors for their support during our financial recapitalisation process and CVA. Completion of the transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment. Looking ahead, notwithstanding the challenging market conditions, we are focused on delivering our strategy to enhance our position as a leading convenient broad appeal fashion destination''.2nd November 2020It has been reported that 2 landlords, British Land and Land Securities have challenged New Look's CVA casting doubt on the company's ability to survive.  The new lockdown will hit New Look hard as they only have a small proportion of their sales online (20%). Challenges against CVAs have not been successful in the past.5th September 2020In an unexpected outcome - New Look's creditors have approved its CVA proposals when put to a vote today. Creditors approved with a 75% majority vote in favour.The CVA features no store closures and saves all 11,000+ jobs. It looks to move more than 400 of its UK stores to turnover-based rental models, have an enhanced landlord break clause, and a three-year rent holiday on its 68 remaining stores.14th September 2020British Land, a landlord of New Look, owning 19 of its stores, plans to oppose its CVA proposal laid down to vote on tomorrow. Landsec, of whom own 10 stores also are believed to oppose as are Hammerson.The possibility that New Look's biggest landlords will vote against the plan, does not appear good for the retailer. Its chance of survival is thrown further into red.What will the outcome be tomorrow?6th September 2020It is not looking promising for New Look since around ten of its landlords have been reported to of rejected its CVA proposals, to be voted on by creditors in the next 9 days. Can the table still turn? Or is liquidation coming even more unavoidable now?26th August 2020New Look has announced it has reached an agreement with its financial creditors. This involves investing £40m in new capital and ''significantly de-leveraging'' its balance sheet. The group expect this to be complete on or before 31 October 2020.The company has also announced that it is launching a CVA, so asking landlords to accept new turnover-based leases across its portfolio.The fashion retailer also said it is launching a debt-for-equity swap on its current debts, looking to lower those from £550m to £100m.The British Property Federation have criticised the CVA proposal due to ''inaccuracies''.Drapers report more.10 August 2020According to This is Money, New Look is reported to be considering a company voluntary arrangment (CVA) since it looks to switch to turnover-based rents.Advisors from Deloitte are expected to be appointed as soon as this week.If a CVA is used, this would not be the first time for the company. The retailer used one in 2018 when landlords voted in its favour as it was used to improve the operational performance of the company.01 July 2020It is reported that New Look has given an ultimatum to landlords; trying to reach an agreement to move to turnover-based rents for its 500-strong store estate.Consultancy firm, CBRE, have been hired to help with the process. If discussions with landlords are not successful, likelihood of the retailer falling into a pre-pack administration is high.If a pre-pack is used, this would be the second financial restructuring it has undergone in less than two years, after its debt-for-equity swap with stakeholders in January 2019. At this last restructuring, New Look moved onto monthly rents for most of its portfolio and asked for rent holidays for some of its stores.Talks with landlords have been happening for most of the month though concern rises that some will block the proposal.A pre-pack has been discussed and is ‘’the last thing it wants.’’A spokesperson said, ‘’We are committed to seeking a consensual agreement with landlords to move to turnover rents, and work in partnership with them as we continue to navigate these increbily challenging and uncertain times together.’’The retailer employs 12,000 people across its UK and Ireland business.New Look are not the first to look at a move to turnover rents amid the covid-19 pandemic. Frasers Group are the latest to be looking at doing so. Other retailers have appointed administrators as a result of the pandemic: Debenhams, Laura Ashley, Cath Kidston. Some have also refused to pay March quarterly rents.

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Landlords Settle Case Against New Look’s CVA Before Court of Appeal

Moratorium on tenant evictions is further extended until September 2021

in News Property and Real Estate

16 June 2021Restructruing trade body group, R3 has shared that the ban on the eviction of commercial tenants will be extended a further few months, to 30 September 2021.11 March 2021The government has confirmed that it will extend a ban on the eviction of commercial tenants until the end of June 2021. This means that restaurants still embroiled in battles over rent debt will be given further breathing space to negotiate their way out of those disputes. Or not.The end date is six weeks after restaurants are permitted to reopen their dining rooms.This will be disastrous for landlords that rely on rental income and have had no debt relief from their bank, or indeed a landlord that is using rental income from an unencumbered asset to fund their retirement...Many tenants have been trading during the pandemic and have chosen not to pay their landlords anything.

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Moratorium on tenant evictions is further extended until September 2021

CVA Advice For Landlords

in Property and Real Estate What is a CVA (Company Voluntary Arrangement)?

Landlord affected by CVA – Should I Vote For Or Against? Should I Even Vote? High street names, once bastions of the High Street are using company voluntary arrangements to restructure their leases, to cut costs during the pandemic. But is this fair? Should I vote? These are just some of the questions we are being asked daily as CVA experts. Keith Steven has experience of dealing with over 500 CVA cases in 23 years, so he knows a thing or two about turnaround. We asked him to answer these frequently asked questions…..CVA Debate on the 7th November reviewedQ1 As a landlord should we vote? You are not obliged to vote as a creditor in a company voluntary arrangement. The CVA voting process is entirely optional. However, I believe it is important for all creditors and stakeholders to take part in what is an equitable process set out by the 1986 Insolvency Act. Yes, CVAs have been part of UK law since 1986.If you don’t vote at all, then your vote will be deemed to be in support of the CVA because it is not a vote against.  Is that the impression you want to give as a landlord? By abstaining you don’t really influence the vote against.So, we would always recommend carefully reading the proposals put forward to you by the CVA nominee and question the nominees or indeed the company proposing the CVA on the terms of the CVA proposals. Not many creditors are aware that they can put forward modifications to change the proposal.If for example a CVA does not include an element of your debt, you can modify the CVA by proposing modifications. For this to have any bearing on the CVA decision making process you would have to have more than 25% of the overall votes cast.Question 2: As landlords should we vote for or against a CVA put forward by the tenant?That is a decision to be made on a purely commercial basis. It may depend on the proposal’s terms to deal with YOUR property and the properties and unsecured debts of other stakeholders. At this moment in time many ‘High Street’ CVAs are predicated on dealing only with the landlords’ leases for their so called dark stress (failing outlets).  My view is it is not equitable to pick on one constituency for the purpose of closing stores. But this is for you, your board and perhaps investors/lenders to consider carefully.In our view, normal CVA arrangements should include most if not all unsecured debts that the company has at ‘the line in the sand’. Remember secured debt stands outside the scheme but can influence it(**).  The benefit of this for the company is it reorganises its current liabilities, excluding secured debt, in exchange for an offer to repay a dividend over a period of years or a one-off payment. We call this the X dividend over Y years approach.By excluding debts such as non-domestic rates, employees’ debts, contingent liabilities, supply-side creditors and other short-term debt from the CVA, the company does not get the full benefit of the scheme. More importantly - in the case of Toys R’Us -  HMRC brought the CVA scheme down for £15m of unpaid taxes, which were excluded from the CVA. Toys R’Us is no more on the UK retail scene.Q3: If I vote against what happens?This is an equitable process, if 75% or more of the eligible votes are cast in favour then the CVA is approved.  If the vote falls short of that, the CVA is not approved and the company may go into administration or liquidation. Your vote may allow the CVA to be approved but your property agreement, lease or licence may be terminated by the CVA’s failure.Q4; If we vote in favour of the CVA what happens?As above the process requires votes to be cast either in favour, against or in favour with modifications. Your vote may allow the CVA to be approved but your property agreement, lease or licence may be compromised, or the rent reduced as set out in the CVA proposals.Q5: We are not sure what the CVA proposal we have received means for our property, can you assist?Our insolvency practitioners, directors and regional managers are happy to give general guidance on the CVA’s terms and what the proposals may mean for you subject to the normal caveats and client conflict relationships. Do call us on 0800 9700539Q6: I see there has been recent case law on CVAs.  What is the situation?Recent case law regarding the New Look and Regis CVAs has not changed the situation much.  Landlords are still treated as a creditor whose contracts have been compromised. That said, in the Regis case an arbitrary blanket discount on their claims of 75% was regarded as unfair. It is likely then that there will fewer cases of large discounts being applied to landlords’ claims for voting purposes and, in turn, that should make it more difficult for companies to impose CVAs on dissenting landlords. It is still possible to discount landlord claims for voting purposes, but the discount must be a reasonable method for estimating a minimum value.One of the most significant points to come out of judgments in New Look and Regis is that, where lease modifications at the landlords’ expense have the effect of increasing value for the benefit of shareholders, that benefit should be shared with the impaired landlords to avoid unfair prejudice.What if I want to know more about CVA? Please download our CVA Experts Guide with 120 pages of information here**Secured creditors can vote for the likely shortfall in their recovery if the company entered liquidation for example. Without relinquishing their valid security. Obviously, ALL secured creditors must be informed about the CVA process and take part in the scheme architecture.

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CVA Advice For Landlords

Another loss for UK landlords in their battle against CVAs as the fight against Regis’ CVA is rejected

in News Property and Real Estate

London’s High Court rules in favour of Regis which was fighting a challenge by their landlords that claimed they were unfairly prejudiced by Regis’ CVA proposals.Regis UK Limited, operate its salon and beauty business under the brands of Regis and Supercuts. In October 2018 Regis entered a CVA but this was challenged by landlords just a month later. It was argued that the proposals caused unfair prejudice and material irregularity under section 6(1) of the Insolvency Act 1986. Reasons of challenge:Certain creditors should not have been able to vote due to their debts being claimed as invalid = material irregularity Modification to leases were unfairly prejudicial Two critical creditors were treated differently The more suitable alternative would have been a pre-pack sale or sale following a trading administration, not a shutdown Inadequate disclosure of transactios between 2017 and 2018 75% voting discount of landlords claimsWhy was the CVA challenges revoked? All but one of the claims were dismissed by Zacaroli J:Lack of utility in the application; the court believed the only purpose of the application was to decipher if the CVA should be revoked and to determine the theoretical question of if nominees should be ordered to repay fees The possibility of irregularity was not material There was no unfair prejudice as landlords had the choice to terminate the lease or accept the proposal terms (which offered a more favourable outcome than any other alternatives)The claim not dismissed was that the treatment of one critical creditor was not justified.Despite the revocation of the CVA, former nominees and/or supervisors were not ordered to repay any fees. Lessons? Like the recent case with New Look, where the High Court also revoked its CVA challenges by landlords, on similar grounds, it should be learnt that CVAs remain a viable, useful restructuring tool. The decisions made by the High Court, in favour of the CVAs reassure other companies in use of them, if ever comes the need.National Law Review  and Pinsent Masons discuss more.

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Another loss for UK landlords in their battle against CVAs as the fight against Regis’ CVA is rejected

Landlords To Challenge Clarks’ CVA

in News Property and Real Estate

26 April 2021A group of landlords have filed a legal challenge to the restructuring of Clarks, casting a shadow over a turnaround of the near- 200-year-old footwear chain.Property owners including British Land and M&G are challenging the company voluntary arrangement (CVA) that was approved by more than 90 per cent of creditors last November.23 November 2020Creditors approve a rescue deal for Clarks. It allows 60 of its 320 stores to not pay rent. For the remaining 260, revenue based rents will be used.This deal still needs to be accepted by shareholders for it to go ahead and for LionRock Capital to take a majority stake of the business, but gaining 90 per cent approval from landlords is a good stepping stone.Gavin Maher of Deloitte who is working on the CVA said: ''The approval of the CVA is an important milestone for Clarks, enabling the business to move forward. The CVA, together with the proposed investment from LionRock, will provide a stable platform upon which the management’s transformation strategy can be delivered.''4 November 2020Struggling footwear retailer, Clarks has been rescued by a £100m investment deal from LionRock Capital.The Hong Kong private equity firm agreed a conditional CVA, involving slashed rents to nothing at 60 of its 320 stores and moves to a turnover based model for others. All stores remain open,Also involved in the deal is the founders, The Clark Family, to have a reduced stake in the business. LionRock will become the majority owner.Almost 4,000 UK shopfloor workers have been warned that their roles are at risk.26 October 2020Clarks is undergoing talks this week with landlords about a deal in the form of a company voluntary arrangement. Involved in the proposal is around 50 store closures, an unconfirmed amount of job losses and the footwear retailer switching to a turnover-based rent model for future rent payments.If the CVA gains approval, a cash injection of over £100m from LionRock Capital will be forthcoming.6 October 2020A rescue deal for struggling family-owned footwear retailer, Clarks, is contingent upon the approval of its creditors.A Company Voluntary Arrangement is being mooted, led by LionRock Capital. The CVA would involve up to 50 shop closures as well as a switch to turnover-based rents. Also upon the CVAs approval would be more than £100m fresh capital investment from the Hong-Kong based private equity fund. This would be the first time that the founding family shareholder would loose majority control over the company, in all of its 195-year existence.24 September 2020Hong-Kong based private equity firm, LionRock Capital and investment firm, Alteri Investors, are said to be the two remaining bidders interested in having a stake in majority family owned, Clarks.A deal is expected to be settled in the next month.Several accountancy firms are currently working on a restructuring of the footwear retailer as it faced troubles from coronavirus and the impact on the high street. KPMG and Rothschild have been drafted in to advise the company as well as Deloitte being hired and PricewaterhouseCoopers being enaged by some of the chains lenders.21 May 2020Around 900 office jobs are to be cut at Clark’s as part of its turnaround plan to revitalise the business for operations and trading, post-coronavirus.Today, 160 redundancies have been made globally, 60 per cent being job losses for its headquarters in Somerset. Over the next 18 months, another 700 employees will be made redundant. This reduction will however create 200 new jobs and those being made redundant will be actively supported in finding alternative employment, within or outside of Clarks, the retailer has confirmed.This is all a part of the retailers ‘Made to Last’ strategy, launched at the end of 2019, aiming to make sure it has a sustainable future. The turnaround strategy also focuses on a new brand strategy which will exploit the brand’s potential and leverage its heritage and consumer relevance in the market today including concentrating on: sustainability, product innovation, design and quality and digital enhancement for convenience of customers’.Just last month we were informed that Clarks was potentially looking at closing a few of its stores permanently. CEO, Giorgio Presco, says that stores will continue to be reviewed in line with changing consumer needs.Covid-19 had also led to short-term liquidity issues for the British retailer. In response to this, its leadership team have been reviewing funding options with selected advisors to enable future growth and ensure the business’s strategy can be delivered.6 April 2020Family-owned footwear retailer, Clarks has made plans for the permanent closure of some of its stores and is drafting in bankers to review its finances due to the impact the coronavirus outbreak is having on the company.It is rumoured that a number of its 347 UK stores will not be reopened after the governments enforced closure of non-essential shops is lifted.In recent days, Rothschild, the investment bank, has been appointed to aid the firm in exploring finance options including accessing new borrowing facilities.Many of the staff for the loss-making firm have been furloughed through the Coronavirus Job Retention Scheme. For the remainder of the workforce, options are to be assessed.The 194-year-old footwear firm has been trying to turn its fortunes around for the past year or so. Last year, Giorgio Presca was brought in as the new CEO. Also last year there was warnings of store closures after losses more than doubled.The latest accounts show sales fell 4.6% to £1.47 billion pushing losses from £31.3m to £82.9m in the past year.Clarks has been working with management consultancy group, McKinsey, on a new corporate blueprint but now priorities switch to focus on how best to survive this pandemic.However, the struggling retailer is now prioritising how best to survive during the pandemic.A spokeswoman for Clarks said: "Clarks continually reviews all its stores to ensure that they are the right size and located in the right areas in order to provide the best possible service and offering to its customers.’’"As part of this normal review, we have decided not to renew the leases on a small number of stores and as such, these will cease to trade and will not reopen following the coronavirus closures. We have a strong duty of care to our employees and are doing everything we can to minimise the impact on colleagues."It is expected for the company to instead follow a more formal restructuring arrangement, known as a Company Voluntary Arrangement. Though the spokesperson said there were no talks about widespread shop closures.

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Landlords To Challenge Clarks’ CVA

Personal Guarantee on Commercial Leases

in Directors Personal Guarantee – What Happens In Insolvency or Liquidation? Property and Real Estate Retail

Do I have to personally guarantee the lease for commercial property? When a limited liability company takes on a property the landlord will often ask for a third party to guarantee the obligations under the lease which, in the most part, is to pay the rent and service charge.  This is to reduce the risk to the landlord should the company become insolvent.  Most landlords will ask for this guarantee if the company is relatively new, with little trading history, or in a high risk industry.  Many restaurants and hospitality businesses are asked for these guarantees.  It is usually the directors of the company that are asked to personally guarantee the lease.  As a director this means that you are personally liable for the rent if the company can't pay and the landlord can pursue through the courts and could even make you bankrupt. If I can't pay the rent can the landlord make me personally liable under the lease? Simply, If you give a guarantee then yes.  Whether it is commercially sensible for the landlord to pursue you is a different matter.  If you have no assets or the amount is relatively small that you owe then it might not be worth the costs.  A landlord would need to issue a bankruptcy petition and in the end it might be better to concentrate on reletting the property with a tenant that can pay the rent.  Obviously the landlord is only likely to call on the personal guarantee once the company has vacated the property.One important thing to realise is that if more than one person has been named as a guarantor then these people are what is called jointly and severally liable.  What this means is that one person and/or all are liable.  So it might be practicable that the landlord goes after the richest guarantor rather than pursuing each one individually especially if the others guarantors have little money! Can I get out of the personal guarantee I have given to the landlord? If your business has had a strong trading history and paid rent on time over a number of years then at lease renewal it would be a good idea to try and negotiate that the new lease does not need a guarantor.  However, this will all be part of the negotiation and any landlord will be reluctant to give this additional security up.  It might be that you can negotiate limits to the guarantee, such as it can only be claimed on in the first 2 years of the lease (incidently most business failures happen in the first 2 years) or that the guarantee does not include the family home. How can I avoid the guarantee being called upon? If the company is in a strong financial position then the guarantee isn't a problem.  If the company starts showing warning signs of insolvency it is crucial that the directors act.  It is all too common that directors are over optimistic or blind to the signs.  This can seriously increase personal liability problems.So, the basic advice is GET ADVICE if you are worried your company could be getting into difficulty and you have a personally guaranteed the lease.

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Personal Guarantee on Commercial Leases

Debenhams’ CVA To Be Challenged in Court

in A guide for redundant employees in administration or insolvency situations News Property and Real Estate What is a CVA (Company Voluntary Arrangement)?

Update: Debenhams has lined up Deloitte as administrators in the event that their CVA is successfully challenged by the landlord Combined Property Control (CPC), which owns the freehold to six Debenhams stores, including Southampton, Harrogate and Folkestone.  The landlord is argueing that the CVA was not run properly and should be overturned.  Mike Ashley earlier withdrew his own challenge to the CVA but has said that he will support the CPC's action.  In fact, Mike Ashley is funding the challenge.Debenhams CVA is approved by creditors Following the sale of Debenhams to its lenders via a pre pack administration the lenders will use a CVA to close down a number of its stores and negotiating rents on the remaining ones.At the moment Debenhams has 166 stores across the UK, employing thousands of people in its branches, head office and warehouses.  They have not given any indication as to which stores will be shut.CVAs have been deployed repeatedly this year as a vicious downturn grips the high street. Any attempts by Debenhams to shed stores may be complicated by its corporate structure. The retailer’s property leases are held under several companies, which could force it to undertake more than one CVA at the same time.Debenhams has announced that it will close 22 stores early next year, putting 1,200 jobs at risk.Here is the full list:Altrincham Ashford Birmingham Fort Canterbury Chatham Eastbourne Folkestone Great Yarmouth Guildford Kirkcaldy Orpington Slough Southport Southsea Staines Stockton Walton Wandsworth Welwyn Garden City Wimbledon Witney WolverhamptonIf you are worried about your job if you work at these locations please read our help for employee pages

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Debenhams’ CVA To Be Challenged in Court

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