Creditors approve New Look CVA

New Look has announced that a CVA proposal launched last month has been approved by the majority of its unsecured creditors in a vote that was held today (15 September).

Following the vote, the retailer will have a three-year rent holiday across 68 of its sites, as well as rent reductions across the rest of its estate. 

The retailer will also be able to access a £40m injection of new capital while securing a debt for equity swap, reducing senior debt from around £550m to £100m.

The retailer said the move would provide it with the financial strength, funding and flexibility to navigate its business going forward. 

Nigel Oddy, CEO, 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.”

He added: “The impact of Covid-19 has reinforced this relentless focus on our customer-orientated strategy. 

“As one of the UK’s leading womenswear retailers, New Look is a brand that has inspired tremendous loyalty over the past 50 years and we are determined to enhance our position as the leading convenient broad appeal fashion destination loved by 25-45-year olds as we navigate the post-Covid-19 landscape.”

Daniel Butters, CVA supervisor at Deloitte said: “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.” 

It comes after reports surfaced earlier today that two of New Look’s biggest landlords, British Land and Landsec, would vote against the rescue plan in today’s vote.

According to Sky News, retail landlord Hammerson is also said to be “leaning towards” a vote against the CVA.

New Look first revealed it was calling on its landlords to support a restructuring plan last week, in a move that would reduce rent paid on retail sites after it failed to attract a buyer for the business.