Landlords of beleaguered retailer JJB Sports could lose nearly £40 million in rent now that some 177 stores have been disposed of by administrator KPMG, new findings have revealed.
Research from real estate firm Jones Lang Lasalle on behalf of The Times newspaper found that landlords could lose £37.5 million annually and also forfeit around £5 million a year in services following the disposal of the sports specialist, which went into administration last month after an extended period of poor trading.
Lost rent and taxes on empty property will prove costly for landlords who were braced for difficulties as quarterly rent day reared its head last month and the firm expects that an additional £5 million a year will be lost in unpaid service charges.
While competitor Sports Direct bought 20 of the failed stores from JJB, the remaining units must find tenants which is a costly process and The Times reported that landlords of empty JJB stores will also have to pay £17 million in rates, spelling further worry for the already fragile sector.
