‘If landlords reject New Look CVA, they’ll be next in line for administration’
A lot of people have had to swallow bitter pills to help safeguard the future of New Look. Now one final group, landlords, is being asked to share the harsh medicine.
New Look, which had already undertaken a CVA a couple of years ago, has been forced to trigger the process once again in the wake of the Covid-19 pandemic – a crisis that threw turnaround plans awry as trading went into a tailspin.
In support of the retailer’s recovery ambitions, lenders are switching debt for equity. Their status as senior debt holders will be diluted, along with New Look’s debt burden, which will reduce from £550m to £100m.
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