Landlords are furious at House of Fraser’s announcement yesterday that it plans to shut 31 stores and have called for an urgent government inquiry into the growing use of company voluntary arrangements (CVAs) by struggling retailers.
The British Property Federation (BPF) said it believed that CVAs — an insolvency process that allows retailers to shed stores and lower rents — were being abused and needed to be properly investigated.
The federation lobbies for the property industry and has already criticised House of Fraser for a “highly insensitive” approach when it floated the idea of closures and renegotiated rent last month.
