Door company fails to compel supplier to provide stock

Dispute

A door company has been refused a court order to compel a longstanding supplier to continue providing it with products.

Vibrant Doors Ltd claimed that after years of business between the two firms, its supplier Rohden UK Ltd suddenly terminated their agreement, without reasonable notice.

Vibrant claimed this was unlawful and damaged its business.

However, Rohden said the relationship between the companies was informal, with a series of individual agreements rather than a standing supply contract.

Landlord wins rent dispute with BHS liquidators

Land

A commercial landlord has won a dispute with the liquidators of the former BHS retailer over the payment of rent.

The issue arose because BHS had entered into a Company Voluntary Arrangement (CVA) to pay reduced rents to landlords of its stores and offices.

The agreement contained a clause stating that if the CVA was terminated, the reduced rents were deemed never to have happened. The landlords would then be entitled to claim against the company for the original, full rents, less any payments made during the CVA.

More safeguards for SMEs when customers become insolvent

The government has outlined plans to provide more protection for small and medium-sized businesses who supply companies that become insolvent.

It also wants to prevent directors from unfairly shielding themselves from the effects of insolvency.

Ministers say that in the worst cases, directors can even profit from business failures while workers and small suppliers lose out.

The government is considering a number of proposals including: