The independent arbitration panel empowered to reduce or uphold commercial rent arrears generated during the Covid-19 pandemic has reduced the arrears of a luxury Chelsea gym and health spa while upholding the arrears of a restaurant in the Bill’s chain.
According to the finding of the Falcon Chambers arbitration panel, KX wellness club, a luxury fitness facility near Sloane Square, Chelsea, ran up arrears of £1.8m over the pandemic period for its premies at 60 Sloane Avenue, SW3.
The building, which until July was part of the Vatican’s property portfolio, was originally designed to be a car showroom for Harrods.
The gym has two leases in the building. The arbitrator ruled that the gym should not have to pay arrears on one of the leases between March 2020 and July 2021.
This reduced the overall arrears to £1.2m, which the gym will pay in instalments.
In a separate ruling, the arbitrator refused to reduce £80,000 of arrears run up by the Horsham branch of Bill’s, a restaurant chain that has more than 70 UK outlets. The landlord is Horsham District Council.
The arbitrator ruled that Bill’s should pay the arrears in 12 monthly instalments of £6,666.66.
The arbitrator found that, while the branch probably didn’t trade profitably during 2020, the business was able to meet its rent obligations when paid in instalments.
So far, the panel has published awards relating to five businesses between July and September this year.
