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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