The British Property Federation has hit back at reports that JD Sports, the new owner of Blacks Leisure, intends to renegotiate many of its leases by stating landlords will be happy to sit down and talk, but any pain must be shared.
JD Sports bought Blacks Leisure earlier this week in a pre-pack administration.
The struggling outdoor sports retailer angered landlords in 2008 by expanding back into stores it had previously disposed of through the use of a CVA.
“Landlords supported Blacks in a CVA two years ago and will continue to assist businesses in trouble, but mindful of the impact it has on their own pensioner investors,” says Liz Peace, chief executive of the British Property Federation,
“JD Sports had the money to buy Blacks, and as JD Sports is a solvent business landlords will have to think hard about any concessions, bearing in mind the impact that would have on Blacks’ competitors and their own investors.“
Adds Peace: “In securing support for the previous CVA, a collaborative approach worked well in ensuring the business survived, albeit temporarily, largely with the help of its landlords, and it would be a pity if that goodwill was repaid with new owners seeking to dictate terms.
“Any concessions would come at the cost of lower pensioner incomes, who are also struggling in today’s tough climate.”
