Retailer To Pay £3 Million In Unpaid Rent Following Ruling

The Court of Appeal has ruled that computer games retailer Game has to pay around £3 million in unpaid rent to landlords, following the latest part of the legal battle related to rent not paid while the company was in administration.

The case related to the decision in 2012 to place Game into administration a day after a rent quarter day, which meant administrators were not obliged to pay rent to landlords including Land Securities, Hammerson and British Land during the first three months of occupation.

However, the landmark decision made in the Court of Appeal closes the legal loophole which the case revolves around, meaning the retailer is liable to pay the outstanding rent.

Following the ruling, Game said the decision would have a “significant financial impact” on landlords, tenants and insolvency practitioners and added that an appeal to the Supreme Court was under consideration.

Duncan Grubb, Head of Credit at Hammerson, added that the judgment provided “a workable, common sense resolution to the payment of rent as an administration expense”.