A judge ruled in favour of some of the UK’s biggest landlords in court yesterday in their case against electrical retailer Powerhouse. Daily Telegraph. Financial Times
Prudential, Land Securities, Hammerson, Derwent London and Legal & General brought the legal action against Powerhouse after it agreed a company voluntary agreement (CVA) with creditors that allowed it to continue to trade but, in its judgement, without paying rent.
Powerhouse is owned by solvent New Zealand company PRG, and had signed a guarantee for the parent company for its rent. But Powerhouse tried to use the CVA to block its parent’s obligation.
The judge said this 'unfairly prejudiced' the landlords, who will now have recourse to PRG.
Powerhouse was refused leave to appeal.