The judgement handed down by Justice Anthony Zacaroli in the New Look case has dealt a serious blow for landlords.
Four landlords brought the challenge arguing that the proposed CVA was in effect re-writing existing lease agreements. Mark Phillips, Director of SKSi says:
“This is yet another blow for commercial landlords, who have long felt disadvantaged in the insolvency regime. It emphasises that Landlords need to be engaging with tenants on a more regular basis and to take heed of any warning signs of tenant’s financial status. Here at SKSi we champion the position of the commercial landlords and I would encourage landlords to contact us as soon as there are warning signs as doing nothing clearly disadvantages their position.”