How are landlords affected by a CVA?

Landlords are often among the creditors most impacted by a CVA, particularly in sectors such as retail and hospitality. A CVA can restructure lease obligations, reduce rents, or allow the company to exit unprofitable leases. This means landlords may receive less than originally agreed, but the alternative—liquidation—could leave them with empty premises and little to no recovery. The CVA proposal must demonstrate fairness and ensure landlords are not disproportionately disadvantaged compared to other creditors. In many cases, landlords negotiate directly with the company during the proposal stage to reach compromise terms that work for both sides. While landlords may initially resist, many recognise that supporting a CVA is often in their best long-term interest. For tenants, the ability to rationalise property costs can be the difference between survival and collapse. For landlords, continued occupancy and partial repayment are usually preferable to vacancy and default.