British Land, the FTSE 250 Commercial Property Company, hired lawyers to examine rescue offers for street retailers High Street Poundland and River Island.
Sky News has learned that Hogan Lovells, the city’s law firm, was informed by British Land to search for additional information on the restructuring plans which, according to the two channels, are necessary for their survival.
British Land has 20 Poundland stores, 13 of which would see rents compromised as part of its restructuring plan, while it is the owner of River Island in 22 stores – seven of which would be assigned.
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Retail sources have said that British lands have already concluded agreements to relaunch some of the affected Poundland sites.
The company, which has a market capitalization of 3.5 billion pounds Sterling and is one of the largest commercial owners in Great Britain, has abstained on the vote of the island’s island restructuring plan.
The appointment of Hogan Lovells does not constitute a decision to officially contest restructuring, but this remains an option in both cases, according to industry sources.
Hogan LOVELLS has been engaged in a series of challenges prior to the retailers’ rescue agreements on the basis that they have unjustly compromised the owners of properties.
About 20,000 jobs would potentially be endangered if Poundland and River Island were to collapse.
Both are facing sanctions hearings before the court this month, which will determine if their rescue transactions can move forward.
Even if the proposals are stamped with rubber, around 100 stores in large channels will be closed permanently.
British land has refused to comment.