Blacks Leisure awaits ruling from landlords
UK outdoor clothing retailer Blacks leisure will this week learn whether the 101 landlords who own the 89 stores which the company closed, or are due to close, will give up their full entitlement to compensation in return for a maximum of six months rental income. If the deal goes through it should safeguard the future of the remaining 291 stores in the UK and a significant number of jobs.
The company only needs 75% backing from landlords, in relation to the 89 stores which have been closed, and it is believed this should be forthcoming over the next few days. As many of the landlords in question also have exposure to other stores which are still open it seems to be in their best interest to give a little back to the company to ensure its future. However, as ever nothing is certain in this particular field of the retail market as we have seen some landlords pull the plug on their tenants after taking a very short-term view.
The company has already put aside £7.25 million to compensate the 101 landlords in question and the scheme should go into force on 23 December if landlords vote in favour. Whether this is a route which any other UK retailers will follow in due course remains to be seen but it is certainly an option.
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