The Retailer Spring Edition 2022

SPR I NG 202 2

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Retailers need to be careful. The Scheme does protect some Rent Debts, but the Landlord can act on any other debts.” ‘‘ What should BRC members be doing now if they plan on referring to arbitration? You should consider notifying the landlord of an intention to refer to arbitration. This then allows you the maximum period to make the reference and prepare your proposal and evidence. You should also begin preparing documents that youwill use to show the impact of the pandemic on your business’ performance. Your accountant will be able to assist in preparing these documents. Arbitration is a very intense procedure, so the better prepared your information is the better the chance of a positive result. Given howbusy we expect the arbitrators to be dealing with arrears, clearly presenting the difficulties you have faced in the most accessible format for the arbitrator might well be the difference between success and failure. I’d be happy to chat through exactly how the new law impacts on your business and howyou can deal with any arrears that might have accrued.

When making a reference to the scheme, that party must prepare a proposal for the repayment, the other party can prepare their own proposal within 14 days and each party then may submit further revised proposals within 28 days. The arbitratorwill then consider the proposals after any deadline for final proposals has passed. this can be done on paper or at an oral hearing The arbitratorwill make their decision based on the following principles: • If you can pay your arrears, the arbitrator will state that you should pay them without delay. • If your business is not viable because of the arrears, but would be setting these aside, then the arbitrator will award relief from payment. However, this will be no more than they believe is necessary to preserve your business. • If the landlord can show that their solvency is in jeopardy as a result of the arrears, the arbitrator will not award any relief. The arbitrator will review the proposals. If any of the proposals meet the above principles theywill uphold that proposal. If there are no proposals that meet the principles, the arbitrator can use their own judgment to decide what to award. Theywill communicate their decisionwithin 14 days after an oral hearing, or as soon as possible otherwise.

payments due under a Lease.” ‘‘

David Jones +44 345 415 0000

Rent includes not just rent but also service charges, insurance rent and most other

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