British Land hires lawyers to scrutinise retail rescue deals

British Land has reportedly hired lawyers to scrutinise rescue deals for Poundland and River Island, Sky News has reported.

According to the paper, Hogan Lovells has been instructed by the property group to seek further information on restructuring plans for the two chains. 

British Land owns 20 Poundland stores, 13 of which would see rents compromised under its restructuring plan, while it is the landlord of 22 River Island shops, of which seven would be affected.

The company is understood to have abstained on the River Island restructuring plan vote.

Sources told Sky the appointment of Hogan Lovells “does not amount to a decision to formally challenge the restructurings, but that remains an option in both cases”.

Both retailers face sanctions hearings in court this month which will determine whether their rescue deals can go ahead.

This week it was reported that a High Court judge will decide the future of River Island this week after a rescue plan for the company did not secure full support from its landlords and lenders.

The retailer has reportedly warned it could run out of money by the end of the month if it cannot avoid payments to creditors.

The Times said it understood that not all creditor classes approved the restructuring plan, meaning the final approval will rely on the judge’s ruling at a sanction hearing on Thursday (7 August).

A spokesman for River Island told Retail Sector: “River Island circulated its proposals for a restructuring plan to creditors on June 20. In combination with the company’s ongoing transformation strategy, the plan is a proactive measure to place the company on a firm footing.

“We have been having positive conversations with key stakeholders and are confident that we will achieve approval of the plan in the coming days.”

British Land has been contacted for comment.