Image copyright Getty Images
Landlords have referred to as for an authorities overview as extra struggling corporations ask for lease reductions.
The British Property Federation says too many firms are abusing an insolvency course of referred to as a Company Voluntary Arrangement (CVA).
The Federation referred to as on ministers to urgently conduct an unbiased inquiry into the method.
The pushback from landlords comes as House of Fraser tries to finalise a rescue plan that includes a CVA.
As many as 31 of the division retailer chain's 59 shops may very well be closed, Press Association reported.
Landlords have expressed critical reservations concerning the proposals and met on Tuesday to debate their response. Three quarters of landlords should approve a CVA plan for it to succeed.
It remained unclear when a last announcement on House of Fraser retailer closures can be made and it didn't reply to a request for remark.
Why House of Fraser is struggling
BPF chief government Melanie Leech mentioned landlords needed to assist genuinely struggling companies, however a few of its members believed that CVAs have been being misused.
"Landlords get a raw deal in any CVAthey are going to be one of the biggest creditors," she mentioned.
"They are always going to be hard hit. The issue is whether they are fairly taking a share of the pain."
As acknowledged by Ms Leech there might be "unfair discrimination" between collectors, the place landlords are requested to shoulder a disproportionate quantity of the prices in contrast with shareholders and banks.
Businesses may misuse CVAs as cost-cutting measures to barter lease cuts or shut unprofitable retailers whereas preserving worthwhile retailers open, she added. "The CVA is not just a tool in the armoury of cost-cutting."
Firms misusing the method additionally fail to consider the opposite events affected by CVAs. Large pension funds can have stakes in property which take a hit, Ms Leech mentioned, whereas native economies suffered from store closures.
The British Retail Consortium mentioned retailers solely entered a CVA after exploring all different choices and won't have taken the choice frivolously.
"CVAs offer retailers the ability to continue trading while taking emergency steps which if successful may lead to jobs being saved and fewer property vacancies," a spokesperson mentioned.
A lot of retailers have launched into CVAs this yr, together with New Look, Carpetright, and Poundworld.