Discovery (Northampton) Ltd v Debenhams Retail Limited [2019] EWHC 2441 (Ch)

On 19th September, 2019, the High Court rejected a challenge against Debenhams’ CVA brought by six landlords and funded by Sports Direct.  Norris J’s decision holds that (1) future rent and other future liabilities under a lease can in principle be compromised by a tenant’s CVA even if the tenant continues to trade from the premises; but (2) a CVA cannot compromise a landlord’s right to forfeit under an insolvency event proviso for re-entry. Camilla Lamont worked on the case, together with Tom Smith QC, Richard Fisher and Madeleine Jones of South Square, instructed by Freshfields Bruckhaus Deringer LLP for Debenhams Retail Ltd.