‘Pay as you trade’ call

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A LEADING Sheffield property lawyer is calling for a “pay as you trade” system to even the playing field for landlords and administrators trying to rescue failed retail businesses.

Irwin Mitchell property litigation expert Danny Revitt says administrators can technically run a shop without paying rent for three months, if they are appointed shortly after the Quarter Day, when the rent becomes due.

On the other hand, an administrator who is appointed shortly before a Quarter Day could be liable to pay three months rent, even if they cease trading from the shop within a few days.

Mr Revitt said: “A ‘pay-as-you-trade’ system unaffected by the timing of the administration in relation to the rent payment date would seem to strike the correct balance between the interests of the landlords and the other creditors of the company in administration.”