A leading retail analyst has hailed the European Court’s decision to force GAME to pay 3m in unpaid rents.
Through a loophole in administration law, GAME was able to avoid paying rents when it fell into administration in 2012. A consortium of landlords decided to challenge the law and used GAME as a test case to force retailers to treat landlords fairly – and won.
Good for the landlords I say. It’s shocking how bankrupt retailers have walked away from their obligations,” said retail analyst Nick Bubb. The process should be fairer to all parties. Retailers should survive through their own merits, not by ripping off creditors.”
GAME says it may appeal the case, but that the 3m has already been factored into its last accounts.
GAME’s exposure following this decision is limited to a one-off liability of 3m which has already been accounted for,” the company said in a statement.
This decision will have a significant financial impact on all landlords, tenants and insolvency practitioners involved in current and future business insolvencies in this country.”