BPF slams Next over ‘CVA clause’

The British Property Federation has condemned fashion retailer Next for demanding a “CVA clause” when renegotiating leases, meaning its rent would fall by a similar amount if a neighbouring tenant achieves a rent reduction through a company voluntary agreement.

Next has started demanding the clause because it said landlords were effectively “subsidising those retailers who achieve CVAs to the detriment of others who aren’t seeking CVAs.”

The retailer added: “A ‘CVA clause’ levels the playing field, and keeps it level going forward, should the circumstances of surrounding retailers change over time.”

Landlords’ tolerance for dealing with