The High Court offers no comfort for beleaguered retailers
Whilst this decision may not be surprising, it will undoubtedly send a chill down the spine of retailers in a similar position to The Fragrance Shop.
Although restrictions on landlords enforcing remedies for unpaid rent have been in force since the start of the pandemic, a tenant still remains liable for that rent (unless a deal has been reached with its landlord).
Commerz Real Investmentgesellschaft mbh v TFS Stores Ltd [2021] EWHC 863 (Ch) (16 April 2021)
The plight of The Fragrance Shop in the Westfield Shopping Centre at Shepherd's Bush will be echoed by many tenants up and down the country. In this case, The Fragrance Shop has not paid any rent since April 2020 and owes over £160,000 in unpaid rent and service charge. Government restrictions have meant that The Fragrance Shop has had to close its shop for large parts of that time. However, despite this, its landlord has obtained summary judgement for those arrears. All the arguments put forward by The Fragrance Shop in its defence based on the government’s voluntary Code of Practice, the potential to undermine the current restrictions on landlords’ remedies, the extent of the landlord’s insurance obligation and the construction of the rent suspension clause were given short-shrift by the judge. He felt that The Fragrance Shop had no real prospect of defending the landlord’s claim to recover the arrears.
Whilst this decision may not be surprising, it will undoubtedly send a chill down the spine of retailers in a similar position to The Fragrance Shop. Last week the government published a call for evidence on what to do when the current restrictions on landlords’ remedies expire at the end of June. Retailers can only hope that the government finds a way of fulfilling its promise of preserving tenant businesses and the millions of jobs that they support.
Contact
Sarah Parkinson
Partner
sarah.parkinson@brownejacobson.com
+44 (0)115 976 6575
Related expertise
You may be interested in...
Legal Update
Shoplifting epidemic by organised criminal gangs: The impact for insurers
Press Release
Browne Jacobson continues strategic expansion in Wales with new corporate partner
Legal Update
How the new junk food regulations will reshape Christmas advertising
Legal Update
Embedding social value in procurement
Legal Update
Navigating workplace sexual harassment laws during the festive season
Legal Update
Retail Law Roundup: December 2024
Legal Update
Navigating the Levelling Up and Regeneration Act 2023: Implications for retailers with vacant premises
Legal Update
UK consumer law: What is changing and how might it affect retailers?
Press Release
Browne Jacobson advises retail giant The Range on its acquisition of Homebase
Opinion
Power for local authorities to conduct compulsory rental auctions of vacant high street properties to come into force next month
Legal Update
Building an inclusive workplace: Strategies for attracting and retaining disabled talent
Legal Update
Roundtable report: Community engagement in high street regeneration
Legal Update
Reform of Gambling Regulation in Ireland
Legal Update
ASA bans “misleading” Huel and ZOE ads endorsed by Dragon’s Den Star
Opinion
Choose your words wisely: Balancing inclusivity and employees’ beliefs at work
Guide
Guidance for manufacturers of EVs and HEVs in the UK: ASA's non-exhaustive electric vehicle advertising guidance
Legal Update
(Deep)fake it till you make it? The ASA's role in regulating false celebrity endorsements
Press Release
Browne Jacobson strengthens Irish Corporate team with appointment of Principal Associate James Byrne
Legal Update
The benefits of good governance in sport
Press Release
Browne Jacobson to lead discussions on the future of real estate and infrastructure at this year’s UKREiiF 2024 event
Press Release
Browne Jacobson acquires business of real estate practitioner Paul Taylor Solicitors
Legal Update
The Baltimore bridge collapse: One of the biggest losses in maritime insurance history?
Legal Update
Understanding the ICO's new fining guidance
Legal Update
Unravelling the challenges and opportunities in UK sports governance
Legal Update
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
Browne Jacobson successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
Legal Update
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
Legal Update
COP28 - how to limit and prepare for future climate change
Press Release
Browne Jacobson advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join Browne Jacobson
Podcast
The real estate podcast: How AI and tech is changing real estate
Legal Update
How to negotiate better ‘green’ provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
Legal Update
Utilising prime retail sites to improve the health of our nation
Legal Update
A new era of opportunity for high street regeneration?
