New Look has completed its restructuring, slashing its debt to enable it to invest in its turnaround strategy.
The retailer, which struck the debt-for-equity swap with a group of key stakeholders in January, has reduced its debt to £1.35bn to £350m and freed up £150m of new capital.
New Look said that its new structure would allow it to better navigate the current market and billed it as allowing management to focus on long term growth thanks to the removal of maturing loans. The strengthened balance sheet should allow the business to accelerate investment in its turnaround.
New Look has rowed back on its international operations and menswear standalone stores in the last year as it attempts to shore up its core offer in a tough market.
Executive chairman Alistair McGeorge said: “Today’s completion represents a significant milestone in our turnaround process and a major endorsement from our stakeholders in the strength of our brand and in management’s ability to deliver enhanced profitability through the wider strategy already being implemented.
“With a highly experienced management team and a stable operating platform in place, we are now positioned to deliver on our wider plans and attack our future.”
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