REI: Retailers May Have To Set Up New Companies To Address Rents Issue
Published on Jul 7 2014 2:46 PM in Retail
David Fitzsimons, the chief executive of Retail Excellence Ireland (REI) has told the Sunday Business Post that retailers affected by upward-ony rents may be forced to liquidate their current business and set up a new company, in order to gain better terms from landlords.
Fitzsimons told the paper that if a retailer found itself at a disadvantage in the marketplace when it came to rent, "putting employees, company and fiduciary duties at stake," it could be forced to go down this path.
"That can be by setting up a new company, moving tenable leases and trading entities to the new company, and going back to the landlord," he said, adding that international companies would likely find this potential solution "laughable".
Fitzsimons made his comments following the Supreme Court's decision to overturn the High Court ruling over the rent paid by Bewley's on Grafton Street, a move which the business said was "immensely disappointing".