LandlordZONE
International gym operator Virgin Active has won court appeal to have it’s recovery plan implemented against strong opposition from landlords, writes Tom Entwistle.
A London court has ruled in a commercial tenant’s favour allowing it to write off some of its rent arrears on the majority of its venues. Despite strong opposition from its creditors, Virgin Active will now avoid future steep rent payments.
The Virgin branded gym operator has welcomed the court’s decision for its controversial restructuring plan that the company says will save thousands of jobs across its international locations. It argued that had the action been lost, the company feared the business would have had to go into administration within days.