Next is set to demand rent cuts from landlords that have cut rents for neighbouring retailers as part of company voluntary arrangements (CVA), The Sunday Times has reported.
As retailers including New Look, House of Fraser and Mothercare seek rent discounts as part of CVAs, Next is said to be including a “CVA clause” when it renegotiates rents to “level the playing field” for other retailers.
This would mean that if neighbouring retailers were granted rent cuts as part of a CVA deal, then Next’s stores would be entitled to a similar cut.
Quoted in The Sunday Times, a spokesman for Next said the clause was only being included “where it is appropriate, adding that some landlords were “subsidising those retailers who achieve CVAs to the detriment of others who aren’t seeking CVAs. A ‘CVA clause’ levels the playing field, and keeps it level going forward into the future, should the circumstances of surrounding retailers change over time.”