Game, the computer game retailer, will have to pay
£3m to a collection of Britain’s landlords after it lost a landmark legal case
about unpaid rent.
The ruling by the Court of Appeal closes a legal loophole
that meant companies could avoid paying rent for three months if administrators
were appointed shortly after the quarterly rent day.
The case came to court
after a consortium of property companies including Hammerson, British Land and
Land Securities claimed they missed out on millions of pounds in rent when Game
called in administrators in March 2012.
(source: Financial Times)
The ruling means that companies no longer have a rent free period by calling in administrators and using the legal loophole to their advantage.
