Landlords step up to rescue Blacks Leisure

Property landlords are being given “little choice” but to agree with a
proposed insolvency agreement on Blacks Leisure Group.

The sports retailer, Blacks, is on the verge of agreeing a Company Voluntary
Arrangement which needs 75% of creditors to agree, but a property expert
suggests the landlords are not being given an alternative the

Liz Peace, chief executive, British Property Federation, is reported in the
Telegraph saying: “Landlords have been given very little choice given that the
alternative to accepting this CVA is that they would lose more leases and get no
empty rates cover.”

“There comes a point where people will demand controls and a certain level of
fairness about how insolvency regulations are written and enforced,” she added.

In order for the CVA to be successful landlords will have to concede on some
of their financial claims.

Under the CVA the retailer will continue to trade as normal but will only pay
a percentage of the rent.

Creditors, including landlords British Land and Westfield, are to meet later
this week to discuss the CVA.

Blacks is reported to have agreed a new £42.5m banking facility with Lloyds
Banking Group as part of the CVA which should save up to 4,300 jobs.

Further reading:

KPMG floats Blacks Leisure CVA plan

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