Tenant Insolvency: Beware The Surrender

In these times of high street failure and intensely difficult trading conditions, the incidence of tenant insolvency is on the rise. It is a sign of the times that HMV, Jessops and Blockbuster rank as three of many examples of failure within a list of approaching 250 businesses that have failed since 2007 affecting in excess of 23,000 properties.

Against this backdrop it is inevitable that commercial landlords will seek to minimise their losses by negotiating with liquidators and administrators with a view to securing a commercial resolution that both secures payment of some of the liabilities whilst also freeing up property for onward letting. Many would rather do this than run the risk of a potentially far worse deal by waiting for the insolvency to be completed.