Landlords to be hit by collapse of Topshop owner Arcadia

The BPF’s Leech added: “It was only last year Arcadia undertook a controversial CVA, forcing property owners to accept significant rent cuts and promising in return that this would secure the business’ future.”

Leech said: “Retailers are grappling with challenges today that pre-date this pandemic but Covid is bringing into sharper focus which businesses have invested, innovated and adapted to changing consumer behaviours.

Those that have not have very little resilience in the face of economic headwinds and it is their staff and their creditors including property owners, and the millions of pensioners and savers they represent, who are paying for their failure.”

 A number of retail property owners have seen rental income hit in 2020 as scores of retail and hospitality businesses have struggled to pay rent. Numerous high street businesses have suffered from lockdowns, forcing them to close sites and have less, or no, trade.

On Arcadia, Matt Smith, joint administrator at Deloitte, said: “We will be rapidly seeking expressions of interest and expect to identify one or more buyers to ensure the future success of the businesses."