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Old 23-11-2025, 18:16   #3
Chris
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Re: Asda planning sale-and-leaseback to raise cash

I have worked for employers in the past who use sale-and-leaseback to make the operation look more profitable. To an extent it does improve profitability in the short term because you get all the property sales on your balance sheet and you lose a lot of ongoing costs related to the maintenance of the estate. But in the longer run you’re at the mercy of a landlord to whom you owe rent, upon whom you rely for maintenance and who, once the contract is up, can turf you out of the building which you no longer own.
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