Landlords are worried about a new surge of shops going into administration after today, according to city-based property law expert Danny Revitt.
Mr Revitt, a partner in the Sheffield office of Irwin Mitchell, says a number of high profile retailers went into administration after rents became due on the quarter day in June.
He cites the case of discount store group TJ Hughes, which went into administration six days after the June quarter date payment was due. Administrators argued they did not have to start paying rent until the next quarter payment fell - today.
Mr Revitt says there is often speculation surrounding rent quarter days, but June showed the huge impact they can have.
“The landlords argue that Administrators shouldn’t be able to avoid liability for rent by timing their appointment just after the quarterly rent falls due. Landlords are bracing themselves for whether anything similar happens in early October.
“In better economic times, quarter days would come and go with little excitement. Now, both landlords and tenants approach these dates with meticulous financial planning as their competitors and funders watch with interest.”