B&Q and Pamela Scott rent release deals ‘likely to set precedent’

The successful emergence from examinership of DIY giant B&Q (Ireland) and ladies fashion retailer Pamela Scott after releasing themselves from prohibitive rent agreements is likely to set a precedent for other similar-sized chains, according to industry representative Retail Excellence Ireland.

A significant number of high street retail chains — potentially as many as 10 — could be about to apply for examinership in a bid to release themselves from prohibitive rent agreements.

“The development is most interesting for international retailers with parent company guarantees, as precedent has now been set indicating that leases can be renegotiated even with a parent company guarantee in place,” noted REI chief executive David Fitzsimons.