Blacks landlords 'likely' to vote for rescue in hope of saving jobs

Published on Sunday 22 November 2009 21:03

LANDLORDS are today "likely" to vote in favour of a rescue deal for troubled outdoors retailer Blacks in a bid to save more than 4,000 jobs, according to the British Property Federation.

The BPF said Blacks landlords would meet with the retailer today to try to agree a company voluntary agreement (CVA) to stave off administration. CVAs are deals struck between landlords and their tenants to end leases early.

The retailer, which also owns Millets, needs a 75 per cent majority vote, said the PBF, which would see 101 stores – about one quarter of its outlets – closed, with landlords forced to give up "lucrative" leases. In return, they will get six months' rent and payments to cover empty rates.

Liz Peace, chief executive of the BPF, said: "The property industry has come a long way and is now more flexible than ever."

But she said that while landlords would "do what they can to work with their tenants" there was a growing unease over the use of CVAs. Peace added: "With the average existing retail lease lasting over 12 years Blacks would walk away from many hundreds of years worth of rent if the CVA is passed."

Blacks – which traces its roots back to 1861 when Thomas Black founded his sail-making company in Greenock – outlined its plans earlier this month and said the CVA would last nine months if voted through.

Meanwhile, Borders UK – the music, books and DVDs retailer – was yesterday understood to be approaching a number of retailers with a view to buying all or part of its business amid reports that WH Smith has abandoned a proposed takeover.

Borders UK – which has five of its 44 stores in Scotland – was sold in July to its management team and Valco Capital Partners by outgoing Channel 4 chairman Luke Johnson's Risk Capital Partners.

In August, Ernst & Young, Borders' auditor, raised doubts about the chain's ability to continue as a going concern, according to accounts filed at Companies House.