Blacks' landlords running the numbers were left with two options today
According to the British Property Federation, landlords felt the choice was between the Company Voluntary Agreement where they agree to pay a maximum of six months' rent on its outlets in return for cancelling its long-term lease obligations. Blacks will remain liable for rates until the property is re-let or until the lease expires (12 years), or a 'pre-pack' administration - where the business collapses and is then sold immediately out of administration following a pre-arranged deal to shed unwanted assets - which could have left landlords with nothing, plus an obligation to pay rates on empty properties.
Paying the rates is a huge issue as it's one thing landlords not taking any money in, it's another them opening their own wallets and paying out. It could be six months until these shops are retenanted, or it could be five years….
These are moves that both local Councils and landlords will have to consider taking in order to help rebuild the retail trade.
The future of Blacks Leisure and more than 4,000 retail jobs were sdecured today after landlords gave their 'overwhelming' (75%) support for the rescue deal.
Incidentally, before parking the problem with the 'greedy' landlords, NAMs & KAMs should bear in mind that this Blacks Leisure hit will be taken solely by the landlords - many of whom are owned by the public and its pension funds.....
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