New Look CVA gets green light from landlords saving over 11,000 jobs
New Look has had its company voluntary arrangement (CVA) seeking to move over 400 of its stores on to turnover-based rents approved by creditors, saving over 11,000 jobs.
The retailer said the CVA had “been approved by the requisite majority” of more than 75% of creditors, including a swathe of disgruntled landlords, at the vote which took place on the proposed measure today.
Along with moving 402 of its stores over to turnover-based rent agreements of up to 12%, the passage of the CVA means that New Look has also completed a contingent debt-for-equity swap, reducing debt from over £550m to around £100m.
The retailer has also agreed an extension on its primary working capital facilities with its lenders and a cash injection of £40m to support its turnaround plan.
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