Case Study: Magnet consolidate assets following a small downturn in trade
Magnet is the UK’s leading kitchen experts with a number of branches and showrooms throughout England, Scotland and Wales.
Following the recession, Magnet made the decision to restructure and consolidate their business, which involved either relocating or closure of 10 of their stores in the Scotland and Northern England region.
Magnet appointed us to conduct dilapidations assessments on those leasehold properties and thereafter provide on strategy for dealing with the dilapidations matters with the landlord in order to permit the lease to determine or for break clauses to be validly executed.
Once the overall strategy had been agreed with Magnet, they provided a supplemental appointment to SW to design, commission and execute the repair works prior to the lease determination date concerning 5 of those properties. During the works we successfully negotiated the landlord agreement that all works had been satisfactorily carried out, therefore extinguishing the client’s obligations.
We negotiated financial settlements with the landlord’s agents in regards to the remaining 5 properties to a satisfactory conclusion. For example, we secured Magnet a £0 settlement in regard their property in Dumfries, releasing Magnet from their lease at no extra cost for dilapidations. At the Magnet properties in Elgin and Dunfermline, we were also able to achieve lower exit costs than it would have cost Magnet to undertake the dilapidations works.
This instruction proved our team’s expertise in dilapidations both in England and Scotland (the law of which is different in both regions), but thanks to our previous experience of working in both nations, we were able to navigate the laws to reach the best outcomes possible for Magnet.