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Wednesday, 26 June 2013

Ark, Dwell, ModelZone and Internacionale all in administration

This week has been a bad one for retailers as a number have gone into administration or have filed notice of intention to appoint.

The casualties this week have been Ark, Dwell, Internacionale, and ModelZone.

The recent rent quarter day is likely to have been the catalyst although business rates have been blamed this time round as well.

Quarterly rent may be enshrined in the lease agreement but many landlords are open to negotiation and are often willing to accept monthly rental payments with little or no penalties.  They are most likely to have the right to ask for interest on the overdue rent as per the lease but this might make the difference between the business surviving or not.

It is not just retailers that are affected but anyone whose business depends heavily on their property -   Retailers rents are normally a higher proportion of their overheads than other businesses hence they are more vulnerable.

If as a business you feel that your rent is overstretching you then it may be possible to ask for a rent concession.  This is more common practice in shopping centres where the landlord owns the whole centre and helping one retailer indirectly helps the others.   The last thing a landlord wants is empty shops which will detract from the centre as a whole.  If you do ask for a concession make sure you have up to date accounts and proof of your difficulties.

To read more about the recent administrations see our news pages below;

http://www.companyrescue.co.uk/news/modelzone-ark-and-internacionale-in-administration
http://www.companyrescue.co.uk/news/opco-in-administration-in-blow-for-cardiff-construction

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Many thanks for your comments. If you have a private business problem and you want advice give us a call on 0800 9700 539 or email me at keiths@companyrescue.co.uk. If you are a professional advisor with a troubled client, please suggest they visit www.companyrescue.co.uk or contact me as above.

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