It could be that M&S did due diligence, were aware of the issues and decided to go ahead anyway. They now know precisely what the planning committee want and can negotiate with them to reach a compromise. Alternatively, M&S may have taken a hands off approach and let the freeholder take the risk and the cost of the application. Thus nobody within M&S will get their arses kicked for the rejection and no costs have been incurred to M&S. Its up to the freeholder to sort out, if they want M&S, they will. Now that the freeholder can see that the likes of Waitrose or M&S want the site, the days of Iceland are numbered. Whatever happens with the planning application and building changes, the rent will go up.