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Pumpkin Patch is the latest retailer to go into administration. The administrators have said that they will continue to trade the relevant stores whilst they look for a buyer.
If a company in administration retains premises for the benefit of creditors, the administrator must treat the rent that falls due under the lease during the period as a necessary disbursement and therefore it will rank as an 'expense', which is higher up the chain of priority than an unsecured debt.
One of the requirements for tenants to contract out of the security of tenure regime contained in the Landlord and Tenant Act 1954 is that they make a simple or statutory declaration before entering into the lease.
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Landlords should reconsider summary judgment if a Part 26A restructuring plan is pending.
A landlord’s claim for summary judgment to recover rent and service charge arrears accrued since the start of the pandemic against a non-essential retailer succeeded. Like London buses, a second such case has followed hot on its heels.
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.
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