The CVA was previously revoked when Regis UK went into administration in 2019, on the basis that the arrangement’s treatment of one creditor was unfairly prejudicial to the landlords, however a group of landlords continued to pursue the legal challenge to set a precedent for future CVAs by retail companies.

The landlords launched their original legal challenge against the proposal in November 2018 with Hammerson and British Land, two of the UK’s biggest listed landlords, arguing that it treated them unfairly as creditors.

In March 2021, High Court Judge Justice Zacaroli rejected the landlords’ other arguments against the CVA from Regis UK, which owns the Supercuts brand.

The restructuring tool, which often involves rent cuts and site closures, has been used increasingly by struggling retailers including Mothercare, Homebase and Carpetright in recent years. The CVA proposed by Regis UK included rent cuts of up to 100% at some of its 233 shops and concessions.