Dutch department store group V&D gains reprieve in battle for survival

Ailing Dutch department store chain V&D, which is owned by US private equity group Sun Capital, has gained a reprieve in its battle over rent payments with property landlord IEF Capital.

IEF Capital, which owns 12 of V&D’s 63 high street stores, said on Thursday that it would continue its talks with V&D and other landlords in a last-ditch attempt to find a solution and rescue the company.

IEF Capital went to court earlier in the week in a bid to have V&D evicted from its stores following non-payment of rent. The court was due to issue a verdict in the case on Friday, but IEF Capital has asked for the ruling to be postponed pending the outcome of further talks.

V&D had sought a four-month break in paying rent and a structural cut in the rent of its 63 high street stores to solve its financial problems. This demand was rejected by IEF Capital, which in turn proposed reducing the amount of floor space the department store occupies in return for a cut in the rent. V&D has rejected this.

V&D and IEF Capital have been holding their talks at the Amsterdam offices of property adviser Cushman & Wakefield. Both sides now see the possibility of substantially lowering V&D’s costs, including its accommodation costs, but note that more time is needed to find a solution.

V&D used to own its high street stores but these were sold off under the company’s previous owner, private equity group KKR. Meanwhile, 300 members of staff have signed up to a class action suit against the company for cutting wages by 5.8%.