Many of House of Fraser's landlords feel they have been treated unfairly and refuse to give up the fight easily and are planning to go to court over the troubled retailer’s rescue plan.
Their CVA plan received creditor approval last month, although a number of landlords voted against it, and the company is now going to close 31 of its stores, which is more than half its total estate.
But the stores to be closed are largely in areas where the space would be hardest to re-let, such as on declining high streets.
The landlords are claiming there was unfair prejudice against them when the vote was taken.
In a statement, the landlords' advisors said: “It is our view, and that of our legal counsel, that landlords have been disproportionately affected during this CVA process; not only compared to other creditors, but also to how they could have been treated if alternative routes to rescuing the business were fully explored.”
The landlord statement also said: “CVAs were designed as a means to rescue a business, not simply a tool to shed undesirable leases for the benefit of equity shareholders. The proposals should not be disproportionately detrimental to or prejudiced towards a targeted group of creditors. Our landlord group believes that House of Fraser and its advisors have failed on both counts.”
