Property group calls for action on CVA ‘abuse’
Commercial property trade body the British Property Federation (BPF) has urged the government to tackle the “abuse” of company voluntary arrangements.
In a letter to Lord Callanan, the government minister for climate change and corporate responsibility, BPF warns that CVAs in the UK are renowned for being flexible and low cost, but “in recent years this flexibility has allowed for an abuse of the CVA process”, and landlords have been disproportionately impacted by arrangements that can be voted through by other less-affected creditors.
In the letter, seen by Drapers, BPF chief executive Melanie Leech adds that abuse of CVAs makes it riskier to invest in town centres; distorts competition and favours poorly run businesses; hurts UK pensioners, taxpayers and savers; undermines property rights, hurting the UK’s reputation; and undermines consensual negotiations and partnerships between landlords and retailers.
Shareholders approve £100m investment in Clarks
PA
23 December 2020, 2:33 pm
Shareholders of shoe chain Clarks have approved a rescue deal from a Hong Kong-based private equity company.
LionRock Capital will invest £100 million in the 195-year-old retailer as part of a Company Voluntary Arrangement (CVA).
The CVA will mean that none of Clarks’ 320 stores will have to close, and no jobs will be lost.
“The shareholder approval will enable Clarks to form a partnership with LionRock Capital, a seasoned Asian private equity firm, who will acquire a majority stake in the business for an investment of £100 million,” Clarks said.
“The deal is expected to be completed in the new year with the Clark family remaining invested in the business.”
Liza Helps investigates.
It has been a tumultuous year and what we envisioned only a short six months ago is nothing like our reality now. Back in January and February, the prospects looked promising after the stop/start 2019 plagued with political uncertainty, then the coronavirus struck, and the country was plunged in to lockdown – it looked a bit grim.
But the pandemic has turbo charged the supply chain industry – the question is: is this the new normal?
“Across the board, property consultants,” says Paul Weston, Regional Head of Prologis UK, “are reporting record take-up.”
Indeed, the latest research from CBRE notes that take-up of UK logistics space is 111% higher than this time last year. Third-quarter take up levels have surpassed the record-breaking take-up levels in the second quarter of this year to reach a total of 13.33 million sq ft.
There is no doubt that supply chains have come under pressure like never before in 2020, as logistics and warehousing serviced a country in lockdown for the first time. The complex ecosystems that get goods from A to B have had to adapt rapidly. As the pandemic drove new consumer behaviour, creativity has come to the fore as the logistics industry works to solve fresh challenges, often on a daily basis.
According to Colliers International, during COVID-19, 85% of companies that occupy warehouse space have reviewed their supply chain network specifically and 31% are storing more stock locally to avoid shortages. This highlights a demand for more strategically located warehouse space. When the dust settles and consumers and retailers are given the chance to pause, what are the considerations for this new landscape?