Kirkland Called In As UK High Street Woes Continue
Debenhams and Cath Kidston are the latest U.K. stores to be hit by an unnerved retail climate.
April 06, 2020 at 07:31 AM
3 minute read
Debenhams
Kirkland & Ellis, Freshfields Bruckhaus Deringer and Shoosmiths are advising as further U.K. high street retailers are hit by the financial impact of the COVID-19 pandemic.
High street department store Debenhams, which has already faced several years of financial difficulties, has entered its second restructuring process in a year.
Meanwhile accessories and homeware company Cath Kidston is reportedly set to file an intention to appoint administrators. Shoosmiths is advising the company on the process, according to two people with knowledge of the situation. Cath Kidston currently has over 200 stores across the U.K., Middle East and China, according to its website.
Debenhams is being advised by long-time advisers Freshfields on the planned administration with a team headed up by restructuring partner Ken Baird and disputes partner Craig Montgomery, while Kirkland is advising the secured lenders, according to one person with knowledge of the matter.
Debenhams said in a statement that the decision would "protect Debenhams from the threat of legal action that could have the effect of pushing the business into liquidation while its 142 U.K. stores remain closed in line with the government's current advice regarding the COVID-19 pandemic".
Last April, Debenhams fell into the hands of its lenders via a pre-pack administration and agreed a CVA with its landlords soon after.
Freshfields and Kirkland led the department store to a High Court victory after the judge rejected a challenge to the CVA. Allen & Overy had represented the lenders on that matter, while Travers Smith, advised CVA supervisors KPMG and Baker McKenzie advised the security trustees.
Shoosmiths' mandate for Cath Kidston is the latest in a slew of restructuring work for the firm. It recently advised restaurant chain Chilango on its CVA and fashion chain Monsoon on a legal challenge launched by British Land in September last year.
The COVID-19 crisis continues to place pressure on an already strained high street retail market. Last month, homeware brand and fashion chain Laura Ashley cited COVID-19 as a contributing factor to its collapse, with Travers Smith picking up a mandate for the company.
Read more
CMS To Shift Lawyers To Restructuring Practice To Deal With Virus Work
Coronavirus 'to Boost Litigation and Restructuring Work', Lawyers Say
Ashurst and Freshfields Take Latest High Street Administration Mandate
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