New Look landlords approve switch to turnover rents
New Look’s landlords and creditors have given the struggling retailer the green light to push ahead with restructuring plans.
The majority of landlords have approved plans to allow the high street chain to switch to turnover-based rents at 402 of its UK stores, which will align rent payments with future sales performance.
The remaining 68 stores will not be charged rent, New Look said.
Today’s approval of the terms of the company voluntary arrangement (CVA) will allow New Look to access a £40m injection of new capital.
The firm has also secured a debt for equity swap, reducing senior debt from around £550m to £100m, and an extension of primary working capital facilities.
The CVA plan also includes enhanced landlord breaks to allow property owners to exit the lease if they can find a different tenant on better terms.
New Look chief executive Nigel Oddy said: “I would like to take this opportunity to thank our landlords and creditors for their support for our CVA, which, alongside the consequential financial restructuring that will now be progressed, will provide us with enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.
“We still fundamentally believe the physical store has a significant part to play in the overall retail market and our omnichannel strategy. We look forward to working closely with our landlords and all creditors to ensure we can navigate the uncertain times ahead together.”
Deloitte CVA supervisor Daniel Butters added: “The approval of the CVA is an important milestone in New Look’s restructuring, enabling the business to move forward. The CVA will provide a stable platform for its management team’s strategy and we wish them well for the future.”