Welcome to our monthly quick fire round up of the Retail and Consumer sector's legal and market developments that should be on your radar this July. This edition features:
- French “Ultra-Fast Fashion” and Wider EU Sustainability Trends
- New EU Product Liability Directive
- FRP Advisory Market Update
- Landlord & Tenant Act Reforms
French Fast Fashion Law update and wider EU sustainability trends briefing
Fashion businesses face a rapidly tightening sustainability rulebook across the EU and UK, with major implications for product design, stock management, marketing, packaging and supply chains. Key developments include the EU ban on destroying unsold textiles and footwear, new packaging compliance obligations, stricter rules on green claims and sustainability labels, incoming deforestation and forced labour due diligence regimes, and mandatory extended producer responsibility schemes for textiles and footwear. In France, a new law on “Ultra-fast fashion”, the first of its kind in the EU, targets the few biggest non-EU fashion platforms. It will result in significantly increasing their Extended Producer Liability charges, hence their prices. It also bans any form of advertising in relation to ultra-fast fashion. Fashion businesses will need stronger governance, better data and reporting systems, more robust substantiation for sustainability messaging, and closer oversight of sourcing and end-of-life arrangements, while also managing increased compliance costs and heightened reputational risk.
Contact Michael Cousin and Rachel MacLeod to discuss.
The EU’s New Risk Landscape – what R&C businesses need to know about the new Product Liability Directive
The new EU Product Liability Directive is set to have a significant impact on how product risks are managed, where liability may fall, and how claims develop. Product liability risk is becoming increasingly complex and global, from AI-enabled products and software to medical devices, connected vehicles and consumer goods. With the new rules due to be implemented by EU Member States by December 2026, organisations should already be assessing their exposure and readiness. We're hosting a client seminar on 15 September in our office in London, where we will be drawing on insights from experts across Europe, the UK and the US and examine the new Directive and its impact on businesses within and beyond Europe. You can register here.
If you have any questions and/or would like find out more, please contact Cécile Burgess.
FRP Advisory Market Update – Key Implications for Retail & Consumer Businesses
Retailers are increasingly seeking restructuring and turnaround advice at an earlier stage, with greater use of restructuring plans, CVAs, lender negotiations and other tools aimed at preserving value.
Retailers continue to review store portfolios, optimise physical footprints and balance investment between online and in-store channels, while maintaining a strong focus on working capital, inventory management and supply chain resilience.
The current environment is expected to drive demand for advice on restructuring, refinancing, distressed transactions, employment matters, property portfolio optimisation and regulatory obligations during periods of financial stress.
A key message for boards is the importance of closely monitoring liquidity and cash flow, engaging advisers early where challenges emerge, and maintaining proactive oversight of financial resilience and stakeholder management.
Takeaway: While trading conditions remain challenging, opportunities continue to exist for well-positioned Retail & Consumer businesses and investors. Early intervention, financial discipline, and a clear strategic plan remain critical to navigating ongoing pressures and maximising value.
Contact Anna Hodgson in our AG restructuring team to discuss further.
Landlord & Tenant Act 1954 reform consultation and implications for retail businesses
The UK Law Commission’s has published its second consultation paper on reforming the Landlord and Tenant Act 1954, which could bring major changes for retailers relying on protected business leases. The proposals focus on targeted modernisation, including simplifying the contracting-out process, raising the lease length threshold for protection, and excluding most periodic tenancies from the regime . Although any changes are not expected soon and will require further legislation, the reform could make lease transactions faster, reduce the risk of technical traps, and change how shorter-term stores, pop-ups and renewal strategies are structured. Wider proposals on rent valuations (including turnover), the redevelopment ground, the own occupation ground, MEES and dispute resolution could also materially affect lease negotiations and portfolio management over time.
Contact Kirsty Black to discuss.
Don't miss out on: Product Liability Rewritten: The EU's New Risk Landscape event
We're hosting a breakfast seminar on 15 September in our office in London, where we will be drawing on insights from experts across Europe, the UK and the US and examine the new Product Liability Directive and its impact on businesses within and beyond Europe. You can register here.
