New Look is a multichannel and value-led fast-fashion retailer with around 440 UK stores and approaching 30 in the Republic of Ireland, as well as an ecommerce business which serves nearly 65 markets.
Serious underperformance beginning in 2017 led to then chief executive Anders Kristiansen’s departure and former boss Alistair McGeorge being drafted in to turn the business around as executive chairman. COO Nigel Oddy took the helm as CEO from January 2020, with McGeorge becoming non-executive chairman.
But New Look was forced to trigger a second CVA process in August 2020 in the wake of the Covid-19 pandemic which threw its turnaround plans awry as trading went into a tailspin. This was given the green light by landlords in September, saving over 11,000 jobs.
Along with moving just over 400 of its stores to turnover-based rent agreements, the passage of the CVA meant New Look was able to complete a contingent refinancing scheme, including a debt-for-equity swap which has reduced debt from over £550m to around £100m. Completed in early November, the refinancing also includes an extension on its primary working capital facilities with its lenders and a cash injection of £40m to support its turnaround plan.
This followed an initial financial restructuring during the previous year.
New Look had its first CVA proposal approved in 2018, which led to the closure of just over 100 UK stores. China and Belgium were exited completely, whilst administrators were appointed in Poland and France where stores have also subsequently closed.
Innovation rating: 3