Insider Media Limited

The British Property Federation has said landlords must "think hard" about JD Sports' plan to renegotiate many of the leases of stores occupied by Northampton's Blacks Leisure.

JD Sports fought off competition to buy Blacks Leisure last week in a £20m pre-pack administration. The collapsed retailer traded from 302 stores at the point of its administration.

Following the deal, JD Sports chairman Peter Cowgill said landlords need to be "realistic" about lowering rents at Blacks Leisure as it was "over-rented on a number of stores".

Liz Peace, chief executive of the British Property Federation, said: "Landlords supported Blacks in a company voluntary arrangement (CVA) two years ago and will continue to assist businesses in trouble, but mindful of the impact it has on their own pensioner investors.

"JD Sports had the money to buy Blacks, and as JD Sports is a solvent business, landlords will have to think hard about any concessions, bearing in mind the impact that would have on Blacks' competitors and their own investors."

Blacks underwent a CVA in late 2009 allowed it to exit the leases of about 90 of its stores and obtain reduced rents at others.

Peace added: "In securing support for the previous CVA a collaborative approach worked well in ensuring the business survived, albeit temporarily, largely with the help of its landlords, and it would be a pity if that goodwill was repaid with new owners seeking to dictate terms.

"Any concessions would come at the cost of lower pensioner incomes, who are also struggling in today’s tough climate."