New Look has announced the completion of a “comprehensive” financial recapitalisation following the High Court’s sanction of New Look Financing’s scheme of arrangement.
The recapitalisation is set to “significantly” reduce long-term debt for the group, whilst providing financial strength, funding and flexibility to “deliver a sustainable trading platform for the business”.
The transaction includes a “significant” deleveraging of its balance sheet, with a debt for equity swap on New Look’s current debt, reducing senior debt from around £550m to around £100m.
The move will also extend its primary working capital facilities, which provide further financial support with no near-term maturities.
In addition, the latest transaction includes an injection of £40m of new capital to support the business plan.
“Completion of the Transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.”
He added: “Looking ahead, notwithstanding the challenging market conditions, we are focused on delivering our strategy to enhance our position as a leading convenient broad appeal fashion destination.”