In summary
Under section 82 of the Coronavirus Act 2020, the government introduced a temporary suspension of landlords rights to forfeit business leases for non-payment of rent until 30 June 2020. This has subsequently been extended twice, on a quarterly basis; to 30 September 2020 and then to 31 December 2020. The moratorium will now be extended a third time, to 31 March 2021.
The limitations on use of CRAR have been similarly extended to 31 March 2021, though any conditions attaching to such extension are not yet known.
The restrictions on service of statutory demands and winding-up petitions imposed by the Corporate Insolvency and Governance Act 2020 (CIGA) will be extended to 31 March 2021.
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Date: 27 May 2021
Julian Dunkerton, chief executive of Superdry, called the latest extension “an incredibly important move” as it buys more time for retailers that have been struggling to pay rents amid the coronavirus crisis.
Fergus Patterson, managing director for Northern Europe at Gant, agreed: “We have now managed to reach an agreement with the majority of our landlords over taking joint pain for what has happened during coronavirus, but not all, so the extension is very gratefully received. It gives us more time to discuss, negotiate and hopefully reach a mutual agreement [over rents].”
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Helen Dickinson, chief executive of the British Retail Consortium, said the news came “in the nick of time for many retailers”.