High street retailer New Look has reportedly entered talks with its landlords about switching to a turnover-based rent system.
According to Sky News, New Look has appointed the property agents CBRE and CWM to negotiate terms for its 500 store portfolio across the UK.
Reports also suggest that if the talks fail to end in favourable terms the retailer will likely to consider alternatives restructuring options.
A New Look spokesperson told Sky News: “As we look towards beginning to safely reopen stores, we can confirm we are in discussions with landlords regarding rental arrangements which fairly reflect the retail operating environment.”
Earlier this year, New Look revealed it had asked its landlords for a three month rent holiday as it looked to reduce costs during the coronavirus outbreak.
In a trading update, the retailer revealed a series of measures focused on preserving cash, maximising liquidity, managing working capital.
Which included significantly reducing its marketing costs; requesting a three-month rent holiday from landlords; pausing all production, to be reviewed as the situation evolves and in response to demand and halting all recruitment.
At the time the company said it was also “actively pursuing” the relevant channels to secure the measures outlined by the government and the Bank of England including a business rates exemption for 12 months, employee cost support, deferral of tax and national insurance payments, and gaining access to the Covid Corporate Financing Facility.