New Look wins backing for CVA proposal
New Look has announced that its company voluntary arrangement proposal has been approved by the majority of its unsecured creditors.
The approval means the retailer will be able to reduce rents on hundreds of stores by linking them to turnover and secure a three-year rent holiday on a further 68 shops. In addition, its net debt will be cut from £550 million to around £100 million through a debt for equity swap.
In a statement, New Look said the agreement will provide the business with the financial strength, funding and flexibility to execute its strategy.
Nigel Oddy, New Look chief executive, added: “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.”
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