Fashion retailer New Look is reportedly in “advanced talks” with Blazehill Capital and Wells Fargo regarding a £100m debt refinancing deal to replace a loan that is set to mature next June.

New Look Bath store

New Look’s refinancing deal will offer the retailer ‘breathing space’

According to Sky News, the deal will offer New Look “financial breathing space” during challenging trading conditions during the cost-of-living crisis.

Talks regarding a refinancing deal for the debt, the holders of which are specialist retail investor Alteri, private equity firm Davidson Kempner and investment bank Goldman Sachs, are said to have been “ongoing for months”.

New Look has reportedly been working with Deloitte advisers to eye up options for the £100m loan.

Sky reported that a successful conclusion to negotiations would “come as a relief” to the owners of New Look, following two previous rounds of restructuring.

A spokesperson for New Look said: “With New Look’s circa £100m term loan maturing in June 2024, the group is currently in positive discussions with advisers and potential lenders regarding a refinancing.

“The business continues to deliver on its strategic objectives, underpinned by its omnichannel strategy, fashion credentials and great-value product.”

The announcement comes after New Look posted revenue of £895m for the full financial year to March 25, 2023, while EBITDA increased 67% year on year to reach £42.2m.