Jigsaw's CVA is no escape for business rates says English Court

A recent High Court ruling has confirmed that a company cannot escape business rates on an empty shop because it has entered into a company voluntary arrangement (CVA) with its creditors.

Background

Robinson Webster (Holdings) Limited (RWHL) operating under the "Jigsaw" fashion brand entered into a CVA in August 2020 designed to rescue the business and rationalise its leasehold obligations.

Under the CVA, RWHL was to "exit" its shop at 44 Bow Lane in the City of London – handing back the keys and offering to surrender the lease. The freeholder, CBRE chose not to accept the offer to surrender. The shop remained empty for three years, and the City of London Corporation pursued RWHL for unpaid business rates totalling over £220,000.

Decision

The lower court had ruled in RWHL's favour, finding that it no longer had a real, practical ability to use the property and therefore should not be liable. The High Court disagreed and overturned that decision.

The court held that the lease continued and RWHL remained entitled to exclusive possession of the premises.

Key takeaways

A CVA can adjust what a company owes its creditors, but it cannot override a landlord's proprietary rights including the right to refuse a lease surrender.
Handing over the keys and offering to surrender the lease was not enough to transfer the rates burden to the landlord.
CVAs vary enormously in their terms and circumstances, which is why Parliament has not granted business rates relief to companies in this position (unlike administration or liquidation).
For businesses in financial difficulty, this case is a sharp reminder: business rates liabilities on empty properties can continue to accumulate after a CVA is in place.

The Mayor and Commonalty and Citizens of the City of London v Robinson Webster (Holdings) Ltd [2026] EWHC 151 Admin