Landlords have accused Clarks of abusing insolvency processes.
The 195-year-old shoe-maker launched a CVA last week that will result in most of its 320 UK stores moving to rents based on turnover. Some 60 shops will move to zero rent and all arrears built up during the pandemic will go unpaid.
Landlords are the only creditors whose debts, which total £160m, will be compromised by the CVA, yet they account for less than 25% of the votes. The CVA needs 75% of votes to pass.
“This abuse of CVAs forces property owners to absorb significant losses with little attempt to build a recovery strategy they can support as economic partners,” said Melanie Leech, chief executive of the British Property Federation.
