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Insolvency Bulletin | February 2014

Rent as an Administration Expense

Re Game Retail Limited; Pillar Denton Ltd & Ors v Jervis & Ors [2014] EWCA Civ 180

The Court of Appeal has now given judgment in the long-awaited case of Re Game Retail Limited. Predictably, the court has followed the route of expediency and held that, where an officeholder occupies a leasehold property for the purposes of the administration or the liquidation, the company’s liability to rent accrues as an expense of the administration. Furthermore, in assessing the liability, the rent is to be treated as accruing on a daily basis and not by reference to the period during which rent accrued prior to the liquidation or administration of the company – to this extent it will be a matter of fact to determine the period for which the officeholder will be required to pay for the company’s occupation.

Bulletin - Re Game