Insolvency proposals to allow a three-month suspension of enforcement and legal action by creditors for bankrupt businesses have been branded “damaging” by commercial landlords.
The measures, introduced in a consultation document issued by the Department of Business, Innovation and Skills, could leave landlords open to abuse, as unlike other suppliers they will not have the ability to terminate contracts during the three-month period, according to the British Property Federation.
BPF chief executive Melanie Leech said: “Allowing businesses three months to consider what steps they take next effectively means that commercial landlords will face uncertainty over expected income, while being unable to mitigate potential losses.
“While this is not ideal for any landlord, small property owners will find these measures particularly damaging, as their income base is less diversified.”
The consultation sets out to create an “efficient and effective insolvency regime” to create a business environment that supports growth and employment by ensuring distressed yet viable business can be rescued “quickly and efficiently”.
To send feedback, e-mail Louisa.Clarence-Smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette
