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Clifford Chance

Clifford Chance
Briefings

Briefings

Landlords lose out as Court sheds light on the payment of rent during administration

9 May 2012

Over the last 18 months we have seen an increasing number of insolvencies in the retail/consumer products sector.  Whilst reduced consumer spending and over-leverage have undoubtedly contributed to such demise, a further factor in most of these cases has been an increasingly unmanageable rent burden.
Against that background, the recent decisions of first instance in Goldacre and Luminar have considered the question of whether and, if so, when, rent should be payable as a priority expense following a tenant's administration.
 

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