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New Look has reportedly appointed Deloitte to advise on its options for refinancing a £100m debt that is due to expire in 2024, two years after the brand’s latest restructuring, Sky News has reported.
According to the outlet, the high street fashion chain’s decision to kick off talks with lenders is partly attributable to the tough trading outlook for British clothing retailers.
The brand is working with advisers at the Big Four accounting firm to explore options for the term loan, whose holders include specialist retail investor Alteri, Davidson Kempner, and an arm of the Wall Street bank Goldman Sachs.
New Look, which has over 400 stores across the UK and Ireland, is reportedly expected to reach a resolution on the refinancing talks in the coming months.
One source close to the retailer reported that it was “prudent” to explore refinancing options at this stage, as the brand is trading well.
In the financial year ended 25 March, New Look reported a total revenue of £895m and earnings before interest, tax, depreciation and amortisation of £42.2m – a year-on-year increase of more than 67%.
New Look said it was not commenting on the reports.
