This week we are investigating whether hard-up retailers are misusing the administration process.
Following British Property Federationchief executive Liz Peace’s comments that the procedure needs to be used as a “helping hand” rather than “a leg up”, we asked more than 500 property professionals what they thought in this week’s Estates Gazette Big Question.
Nearly 60% of panellists felt that struggling businesses should be given a second chance in response to JJB Sports’ example of staving off administration on more than one occasion by persuading landlords to approve company voluntary arrangements (CVAs).
But the majority, 63.6%, said they didn’t believe it was right for businesses to be able to restructure themselves in the way Optical Express has done, to hive down its failing stores into a subsidiary and save the higher-performing parts of the company.
And nearly 80% of panellists agreed with the BPF that government should intervene to address an apparent bias in favour of tenants, as it has been reported that administrators have been able to plan their timing to avoid paying almost an entire quarter’s rent.
One panellist said that, ultimately, every administration decision needed to come down to whether a business was worth saving or whether it was “failing or has failed beyond reach”.
Another added: “There needs to be more openness and less confrontation around business failures. The challenge is maintaining a fair and reasonably level playing field.”
The Big Question is a weekly poll testing the temperature of the UK property market. To join the panel and make your voice heard, go to www.estatesgazette.com/bigquestion
