New data collected for The Standard Newspaper and analysed by Property agents, CBRE, found that London has avoided being hit by the increased number of retail restructures known as CVAs.
The property agent looked at 2820 UK shops which have been involved in the restructuring process of a Company Voluntary Arrangement (CVA), since 2018. A CVA allows retailers to cut rents, close unprofitable sites and continue paying full price for the favoured and viable locations.
Only 341 of these shops were located in London - 12% of the stores affected in the capital had closed. Compared to 41% nationally, it was also found that over half of these stores affected within London, had faced no rent reductions at all.
The UK retail industry has struggled, with Brexit, online retailing and increasing rents, to be a number of influencing factors. Mothercare and Arcadia have recently had CVAs agreed by landlords. Monsoon is the latest chain to propose one – still awaiting the outcome of a vote.
Tasos Vezyridis, CBREs senior director of retail research said: ‘’London benefits from being one of the retail and tourism capitals of the world. It is more immune to the dangers posed by the growth of online retail, and has pioneered the development of experimental retailing, which has lessened its exposure to the consequences of CVAs.’’