Commercial property giant British Land has hired lawyers to scrutinise the rescue plans put forward by Poundland and River Island.
The firm is working with Hogan Lovells to find out further information on the retailers’ restructuring plans, which are subject to High Court approval, Sky News reported.
British Land owns 20 Poundland stores and more than a dozen have been earmarked for rent cuts. It is also the landlord for 22 River Island stores, seven of which are affected by the brand’s rescue plans.
Related Story
Industry sources told the publication that the property giant had agreed deals to relet some of the affected Poundland sites, and had abstained on last week’s River Island restructuring plan vote.
The fashion retailer faced a setback on Friday after several of its key landlords withheld support from its rescue plan, which includes the closure 33 stores, rent reductions on 71 shops and a write off debts including business rates.
River Island’s restructuring plan will now be decided by a High Court judge at a sanction hearing scheduled for Thursday (7 August).
Poundland’s sanction hearing is scheduled for the end of the month. Under its proposals, the discount chain plans to close 68 stores and impose rent reductions across a hundreds of other locations. It is hoping to downsize its 800-plus store estate to a network of 650 to 700 sites.
Click here to sign up to Retail Gazette‘s free daily email newsletter
