UK video game retailer GAME has been ordered by the Court of Appeals to pay missed rent payments of around £3 million amassed during its period of administration back in 2012, according to MCV. The retailer said that it had put aside £3 million in the event that it lost its case.
"The Court of Appeal's decision in this important test case for the property and retail markets fundamentally changes the law in relation to the payment of rent in an insolvency context," GAME said in a statement. "There were important principles at stake for commercial landlords, retail tenants and, indeed, any company with property assets."
"Game's exposure following this decision is limited to a one-off liability of £3 million which has already been accounted for. The real ramification of this decision is, however, that it will have a significant financial impact on all landlords, tenants and insolvency practitioners involved in current and future business insolvencies in this country."
The retailer hinted that it might appeal the ruling to the Supreme Court.