Carnaby Street by Dun.can from Melton Mowbray via Wikimedia Commons

More trouble for landlords as retailers look to scale down portfolios

High street landlords are bracing themselves for another turbulent year as retailers set out plans to slash the size of their real estate portfolios

This week, fashion retailer White Stuff became the latest to launch a review of its estate, which currently totals 115 stores.The business’s chief executive Jo Jenkins said it had appointed advisers from PHD Property to “fully review our property estate and to assist in the realignment of our rental commitments”.

Property Week understands that the company has “no intention” of going down the CVA route and is exploring a wide range of options, but experts added that they would be surprised if it did not launch an insolvency procedure.

One senior industry source said: “Their options are turning around to landlords and pleading their case and negotiating, and the next step is a CVA or go into administration.“It would be surprising if they didn’t launch an insolvency procedure – appointing PHD is a red flag to an administration.”They added: “White Stuff has a large proportion of independent landlords, who can be really challenging to deal with. “They have different drivers and for some of these people this might be their pension or only source of income.”…

…. visit Property Week to read more

Related posts