December 7, 2019

December 06, 2019

Subscribe to Latest Legal News and Analysis

December 05, 2019

Subscribe to Latest Legal News and Analysis

December 04, 2019

Subscribe to Latest Legal News and Analysis

CVA Challenges by Landlords – the Latest News

The hair salon Regis announced recently that the company has entered administration. The news might not come as a surprise because the chain, prior to the company’s administration, was subject to a company voluntary arrangement (“CVA”) whose validity was challenged by landlords.

The joint administrator of Regis commented: “trading challenges, coupled with the uncertainty caused by the legal challenge, have necessitated the need for an administration appointment”.

The appointment of administrators means that the legal challenge to the CVA is at an end. Landlords had challenged the terms of the CVA as unfair, with some landlords’ rent payments purportedly being cut by up to 100%.

Following the decision earlier this year in connection with the Debenhams CVA, when the Court confirmed that a CVA cannot compromise a landlord’s right to forfeit (see our previous blog post discussing the practical impact of that) we had hoped that the Regis case would provide further guidance on the ability of a CVA to compromise landlord claims.

Whilst the landlords claims against Regis are now at an end, this may not be the last time a landlord brings such a case given that retail trading conditions remain difficult.

Those challenging conditions have also meant that landlords are taking a different approach to managing property costs and our blog post last week takes a look at the position from both the landlords’ and tenants’ perspective.

© Copyright 2019 Squire Patton Boggs (US) LLP

TRENDING LEGAL ANALYSIS


About this Author

Devinder Singh, Squire Patton Boggs, Contentious Insolvency Lawyer, UK Attorney
Partner

Devinder leads the Restructuring & Insolvency Group based in our Birmingham office. Devinder's clients include the major clearing banks, asset based lenders, insolvency practitioners, corporates and creditors.

He advises on all aspects of corporate restructuring and insolvency, with a particular specialism in contentious work.

Squire Patton Boggs Restructuring and Insolvency Team is ranked in Tier 1 in the 2014 editions of Chambers UK and Legal 500 where Devinder is described as “commercial” and “a team...

44 121 222 3382