// RPC law firm argues retailers should be given a break from winding-up petitions
// A moratorium would allow businesses to mitigate the impact of coronavirus, argues RPC
A UK law firm has called for a break in winding-up petitions against retailers who fail to pay creditors due to the outbreak of coronavirus.
According to the Telegraph, lawyers at RPC have argued for a moratorium in winding-up petitions, after seeing the number of petitions accelerate since the spread of the pandemic.
READ MORE: Arcadia faces winding-up order & could walk away from leases
Some 52 winding-up petitions have been handed to retailers since the beginning of 2020, with that number likely to increase.
RPC argues that a break in petitions would mean retailers are able to mitigate the impact of the coronavirus, although it would also hurt small suppliers who may be waiting for payments from retailers.
Earlier this month Sir Philip Green’s Arcadia Group reportedly faced a winding-up order as it cancels payments to suppliers in a bid to stay afloat amid the coronavirus pandemic.
According to The Sunday Telegraph, court records show that Principle Systems, a subsidiary of marketing company Principle Global, has filed a winding-up petition against the billionaire’s retail empire.
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1 Comment. Leave new
I can see the logic of the argument; however, many large retailers would use this to further abuse its landlords, many of which are very small businesses which rely on rental income to exist. Banks are specifically not supporting property related business.