Landlords allowed to recover rent from administrators — but is it game over?

In a landmark decision (Pillar Denton Ltd and Others v Jervis and Others), a group of the UK’s largest landlords has successfully overturned previous High Court cases that had allowed insolvent tenants to continue trading from their premises without paying rent. The landlords in this case, which involved the retailer Game, have been allowed to recover £3m in outstanding rents from the period of the tenant’s administration. This decision will have substantial implications for landlords, tenants, insolvency practitioners and purchasers of insolvent businesses. Rent is now to be calculated daily based on the actual use of the premises, rather than by reference to rent periods or due dates. Crucially, rent for these periods will be payable as an expense of the insolvency, and not just as an unsecured debt…

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