Hermes Real Estate has blasted JJB Sports’ approved company voluntary arrangement, branding it “an unfortunate precedent”.
Hermes said it voted against JJB’s second CVA proposal because it does not agree with the use of the CVA in order to reduce lease liabilities.
In a statement, Hermes said: “We believe that the approval of a CVA in this instance could potentially create unfair competition by providing a material commercial advantage to one operator within the retail sector and therefore places landlords in a compromised position when dealing with other retailer tenants.
“It is our view that this proposal creates an unfortunate precedent and sends mixed messages to the retail sector generally.”
annabel.dixon@estatesgazette.com
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