A group of the UK’s largest commercial landlords is objecting to demands to slash rents by the company that bought Allied Carpets out of administration.
The move underlines the tensions between shop owners and distressed retailers.
Led by British Land the group of landlords is expected to reject requests to cut rents by half for a year as part of a raft of concessions to help Allied Carpets grow again.
British Land, which says the group represents more than half of Allied’s 51 stores, says such a move would be unfair on other retailers not in distress.
Both retailers and landlords are struggling in the recession, with retailers sometimes unable to cover the rent and landlords seeing rental income fall because of administrations and tenant cut-backs.