BPE’s Commercial Litigation team has successfully secured full payment of rent arrears for a commercial landlord client, following the service of a statutory demand over the festive period.
As reported previously, the team was instructed shortly after Christmas to take urgent enforcement action against a tenant company that had failed to pay a significant sum in rent and associated costs. A statutory demand was swiftly drafted and served before the New Year, ensuring that pressure was applied without delay.
Following service of the demand, the tenant company paid the outstanding rent arrears in full within a matter of weeks. The prompt recovery demonstrates the effectiveness of statutory demands as a strategic enforcement tool, particularly where timing is critical and the debtor is solvent but unwilling to engage.
Building on this outcome, BPE has now taken further steps to protect the client’s position. A second statutory demand has been served in respect of the landlord’s administration costs, professional fees and accrued interest arising from the matter.
Peter Knibbs, Partner in the Commercial Litigation team, commented:
“Securing payment of the principal debt was an important first step, but it is equally important that landlords are able to recover the costs incurred in enforcing their position. Statutory demands remain a highly effective mechanism for achieving both, particularly where a robust and timely approach is taken.”
This matter highlights the value of acting decisively and maintaining pressure through the appropriate legal channels. By progressing enforcement action without delay, and continuing to pursue all sums due, landlords can significantly improve their prospects of full recovery.
BPE’s Commercial Litigation team regularly advises landlords and businesses on debt recovery strategies, including the use of statutory demands and winding-up petitions where appropriate. To speak to a member of the team, please click here.
