Landlords

We are currently in the process of writing to all landlords by post regarding the ongoing status of their property. If you have not received any correspondence by 20 May 2022, please contact uk_mccolls_landlords@pwc.com.

Frequently asked questions for landlords

What is happening with my property?

Following our appointment as administrators on 9 May 2022, substantially all of the Companies’ business and assets were sold to Alliance Property Holdings Limited (a part of the Morrisons Group) (“the Purchaser”).  Additionally, the Joint Administrators have granted a Licence to Occupy to the Purchaser for some of the Companies’ leased properties, to allow them to continue to trade.

You should have received a letter from us to tell you either that your property is included in the Licence to Occupy (LtO) (Transferring Properties), or alternatively that the Companies are no longer occupying your property and it is being returned to you (Non-Transferring Properties).  If you have not received a letter by Friday 20 May, please email us at uk_mccolls_landlords@pwc.com.

In the following sections, you will find frequently asked questions depending on the status of your property.

Transferring properties (under the LtO)

Invoicing and payment questions

For what period will I continue to get paid?

For Transferring Properties, you will be paid rent from the date of administration or the date you have been paid up to, whichever is the later.  This will continue for as long as the Purchaser is in occupation of the property with the Administrators’ consent, pending completion of a transfer of the lease.  If the Purchaser vacates the property, we will let you know.  Payments will be made monthly in arrears.

When am I going to get paid? 

You will be paid monthly in arrears as long as you have submitted an invoice before the end of the calendar month.  If you charge VAT, this must be a valid VAT invoice.  We will endeavour to make payments within 10 days of the end of the month.  Please note that insolvency case law states that rent accrues daily in arrears and therefore there is no legal obligation to pay rent in advance or in line with previous contractual terms. 

What requirements are there for invoices to be processed?

Please provide invoices as set out in the initial landlord letter. The requirements are:

• If you charge VAT on rent and other charges, a VAT invoice addressed to the relevant company, including ‘in administration’, for the applicable monthly period, for example, for 1-30 June 2022.

• If you do not charge VAT on rent, we still need you to provide us with an invoice, showing the amount being charged for the relevant month, and what it is for (e.g. rent, service charge).

• Confirmation of bank account details have been provided on headed paper (unless shown on the invoice).

• Invoices show the Net, VAT (if applicable) and Gross amounts.

• Invoices should show the split of rent, service charge, insurance and utilities (if applicable and if not provided as separate invoices).

If you are unclear on the above, we have prepared a sample invoice demonstrating the requirements here which you may find useful.

Do you accept applications for payment?

No, if you are charging VAT, all requests for payment must be in the form of a valid VAT invoice in order to be processed for payment.

What address shall we put for rent invoices from 9 May 2022?  Which email address should we use to send the invoices and other information requested?

Please use uk_mccolls_landlords@pwc.com to submit your invoices for future payments. Please ensure that the invoice is addressed to the relevant company (ie. the Group company which is named on your lease), including ‘in administration’.  Information in relation to any unsecured claim you might have in the administration should be sent via email to uk_mccolls_creditors@pwc.com.

If you need a physical address for your invoices, this can be updated to: 

c/o PwC LLP

Central Square

29 Wellington Street

Leeds

LS1 4DL

Please note that physical copies of invoices are not required as pdf format will be acceptable - please provide documents by email only.

Are you able to provide documents/proof of appointment?

Please check Companies House for details of the appointment.

Licence to Occupy and legal questions

Can you provide a copy of the LtO that has been provided to the Purchaser?

Unfortunately we are unable to provide the LtO as this is part of the Asset Purchase Agreement which is a confidential agreement between the joint administrators and the Purchaser.

Who do I talk to about re-assigning the lease?

Enquiries about re-assigning the lease should be directed to the Purchaser or their appointed agents.  We are awaiting confirmation of who to contact in this regard and will update this page when these details are available.

What if there are clauses in the original lease that prohibits the assignment, transfer, sharing or parting with possession or occupation of the Property (i.e. the grant of any form of licence to occupy the Property appears to be a clear breach of these provisions)?

Following the sale of the business, the Administrators have granted a LtO to the Purchaser in order to allow them time to make contact with the landlord and agree the terms of their ongoing occupation of the properties.  As explained in our letter to landlords, rent and associated costs for any period of beneficial occupation by the Purchaser post appointment will be paid. 

A moratorium is in place due to the Companies entering into administration, therefore you cannot take any legal action (or continue any existing action) without the consent of either the Administrators or the court.  For the avoidance of doubt, the Administrators will not automatically consent to such an action. 

Before taking any action to challenge the moratorium, you should contact the Purchaser and discuss the situation and the possibility of a consensual agreement in relation to your property.

Historic debts/Unsecured claims

What happens if I’m owed amounts from before the administration (including service charge, utilities etc.)?

We understand that the majority of landlords have received payment in advance to 31 May 2022.  However, if there are rental arrears for the period of occupation before the date of our appointment (9 May 2022), these will be an unsecured claim in the administration and creditors should submit a claim in the administration of the company which held the lease.  Please submit any claims and supporting documents via email to uk_mccolls_creditors@pwc.com.

Timeframe for payment of unsecured claims

It is not possible to tell how long this process will take as this depends on the level of claims, amongst other factors. The process is however likely to be a number of months. A notice of intended dividend will be sent to all potential known creditors of each of the Companies when nearing completion of the process at which point creditors will have a final 21 days to submit final claims.  

You should be aware that where a dividend is paid, this will be calculated as a percentage of the amount you are owed and all unsecured creditors will receive the same percentage.  You will not receive 100% of any amount owed.

We’ll provide updates on the amount and timing of dividends in our progress reports to creditors, which will be posted on the website in due course.