Landlords opposed to high street retailer New Look’s restricting agreements have won permission to take the dispute to the Court of Appeal.
Mr Justice Zacaroli ruled against the landlords in a judgment earlier this week. However, in a hearing this morning, he said the case could go to appeal.
Creditors voted in favour a company voluntary arrangement to help the stricken retailer in September, in a deal that rescued it from a pre-pack administration.
However, some of the landlords, including the owners of Manchester’s Trafford Centre and Edinburgh’s Fort Kinnaird retail park, challenged the agreement, arguing that it is unfair, and specifically that the court didn’t have the jurisdiction to impose an arrangement of this nature.
At todays hearing, lawyers for the landlord said that it was arguable that judge erred in his definition of “arrangement” and interoperation of the jurisdiction issue.
Landlords are increasingly challenging retail CVAs, which they feel do not take enough account of their interests, even as the high street feels the pinch of the coronavirus pandemic.
The same judge recently heard a similar challenge brought by a group of landlords to Regis, the hair salon operator. Judgment in that case is expected soon.
On Wednesday, landlords lost a challenge to fitness chain Virgin Active’s CVA.
