New Look Retail Holdings has secured €43.4m (£40m) investment as a result of the approval of the company's CVA proposal launched in August this year. The CVA deal will provide New Look with the financial strength, funding and flexibility to execute on its strategy, and also includes:
- A debt for equity swap on New Look’s current debt, reducing senior debt from c.€597.4m (£550m) to c.€108.6m (£100m), and significantly decreasing interest costs
- An extension of primary working capital facilities, which provide further financial support to the Group with no near-term maturities
Nigel Oddy, Chief Executive Officer, 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. Over the course of the last three years we have successfully implemented our turnaround plan: returning to the proven broader appeal product and value-led pricing that we are known for, fundamentally realigning our supply chain to be faster and more flexible; making our omnichannel model more cohesive than ever; driving operational efficiencies; and bringing in new talent across the business. 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.”
