Tenants’ rescue options have been repackaged
11 July 2009
On 27 April, the creditors of JJB Sports approved its proposed company voluntary arrangement (CVA). This was the first major use of a CVA by a UK-listed business to avoid administration. Previous attempts by retailers to use the process to reduce their exposure to unprofitable stores have been largely unsuccessful. A CVA is a procedure under Part I of the Insolvency Act 1986. It enables a company to reach an agreement with creditors over the repayment of its debts. It can alter the fundamental aspects of the landlord and tenant relationship by permanently reducing rent, adjusting the term or requiring landlords to accept surrenders.