Struggling fashion retailer New Look is threatening landlords with a potential pre-pack administration in a bid to move its store estate over to turnover-based rents, Retail Week can reveal.
Multiple sources have confirmed to Retail Week that New Look has hired consultancy CBRE in a bid to move its 500-strong store estate across to turnover-based rents and there remains the possibility of its falling into a pre-pack administration should those discussions not be successful.
If New Look launched a pre-pack administration, it would be the retailer’s second financial restructuring in less than two years, following a debt-for-equity swap with stakeholders in January 2019.
Retail Week understands that talks between New Look and landlords have been underway for much of the month, but the retailer is becoming increasingly concerned that its landlords will block any moves to turnover-based rents.
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