DEBENHAMS has won a High Court battle with landlords to push through its company voluntary arrangement (CVA) proposal that will lead to store closures.
Sports Direct owner Mike Ashley had funded the landlords' case after his shareholding was wiped out when Debenhams went private in a rescue deal. The struggling department store on Wednesday fought off the legal challenge, which threatened its turnaround plan that is set to close 50 stores. It is also set to slash rents at 100 sites, a prospect that landlords balked at.
While Ashley's firm withdrew its own legal challenge to the CVA in July, it still backed the Combined Property Control Group case.
"We are delighted that the court has today confirmed that our CVA is effective and will continue to be implemented as planned," said boss Stefaan Vansteenkiste.
"We note that the only aspect that the judge required to be adjusted was a technical provision of the CVA relating to landlord forfeiture provisions."
(c) 2019 City A.M., source Newspaper