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Embattled fashion retailer New Look is reportedly planning to launch a second CVA that will ask its landlords to switch to a turnover-based rent system.
According to reports it is set to appoint ‘Big Four’ accountancy firm Deloitte to negotiate with over 450 landlords across its 480 store estate. It is thought that the plan already has the support of the company’s bondholders.
New Look is already understood to have withheld rent for both the March and June quarters.
If the proposal is to go ahead it would mark the company’s second proposal in two years. Its previous CVA, which was launched on 7 March 2018 received some 98% of votes in favour of the proposal and saw close 60 out of its total 593 stores, alongside a further six sites which are sub-let to third parties, following poor operational performance.
At the time around 980 jobs were lossed.
The news also comes just days after fellow womenswear retailer Jigsaw was reported to be set to launch a CVA proposal in the coming weeks.
The retailer is said to be set to take action a month after it brought in auditing firm KPMG to look at rent negotiations with landlords.
It is thought that Jigsaw, which employs around 900 people, will permanently close an “unspecified number” of its 75 UK stores as part of the CVA.
