A leading property consultancy has accused some retailers of “opportunistically” seeking to shut expensive stores through company voluntary arrangements, which it said succeeded only rarely.
Colliers International said that there had been a “flurry” of new CVAs — an insolvency process under which stores are shut and rents are cut at landlords’ expense — in 2018, including “some cases from companies which would not be associated with failing brands and large debts”.
The consultancy added: “It is our view that some stable and well-performing retailers are now starting to use CVAs opportunistically to free themselves from leases on underperforming stores.”
The Sunday Times also has an article exploring the “dark side” of CVAs.
Click here for the full Times article (£)
Click here for the full Sunday Times article (£)
