Restructuring Retail: Investor Pressure

Once upon a time the high street was packed with household names. High footfall, consumer confidence and disposable income all made for fairy-tale returns for retailers and landlords alike. High streets are now experiencing unprecedented challenges and many former powerhouses of consumer retail parks now find themselves consigned to history with Mothercare and Thomas Cook being recent victims. Even Vodafone has closed 1,100 stores. It is not just the retailers themselves feeling the pressure. Owners of shopping centres and large property portfolios are also feeling the strain.

Institutional landlords are feeling the downward pressure on like-for-like net rental income and property values, generally resulting from a higher level of administrations and company voluntary arrangements ("CVAs") as retailers struggle to adapt to an evolving marketplace.