British Land, the FTSE 100 commercial property company, has hired lawyers to scrutinise rescue deals for the high street retailers Poundland and River Island.
Sky News has learnt that Hogan Lovells, the City law firm, has been instructed by British Land to seek further information on restructuring plans that the two chains say are necessary for their survival.
British Land owns 20 Poundland stores, 13 of which would see rents compromised under its restructuring plan, while it is River Island’s landlord at 22 shops – seven of which would be affected.
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Retail industry sources said that British Land had already struck deals to re-let some of the affected Poundland sites.
The company, which has a market capitalisation of ? and is one of Britain’s biggest commercial landlords, is understood to have abstained on the River Island restructuring plan vote.
The appointment of Hogan Lovells does not amount to a decision to formally challenge the restructurings, but that remains an option in both cases, according to industry sources.
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Hogan Lovells has been engaged on a string of previous challenges to retailers’ rescue deals on the basis that they unfairly compromised property-owners.
About 20,000 jobs would potentially be put at risk if Poundland and River Island were to collapse altogether.
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Both face sanctions hearings in court this month which will determine whether their rescue deals can go ahead.
Even if the proposals are rubber-stamped, about 100 stores in aggregate across the two chains will be permanently closed.
British Land declined to comment.
