A group of property landlords have reportedly filed a petition in the Court of Session in Edinburgh against British department store chain House of Fraser.
The petition is regarding House of Fraser’s company voluntary arrangement (CVA) agreement, which was approved by creditors in June this year.
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The group claims that they were ‘unfairly prejudiced’ during the implementation of the CVA, reported The Guardian.
They also claim “material irregularities in the implementation of the House of Fraser CVA”.
Accountancy firm Begbies Traynor and property advisory firm JLL are currently advising the group on the issue.
A statement from the landlords group was quoted by the news agency as saying: “It is our view, and that of our legal counsel, that landlords have been disproportionately affected during this CVA process, not only compared to other creditors but also to how they could have been treated if alternative routes to rescuing the business were fully explored.”
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By GlobalDataA House of Fraser spokesperson was also quoted as saying: “We note the statement made by Begbies Traynor and JLL on behalf of a group of landlords, but, at this stage, we have not received anything formally.
“On the assumption that a challenge is filed in court, whilst we are disappointed, we look forward to robustly defending our position and we are confident that this will not affect our commercial plans.”
