98% of New Look creditors approve CVA

Some 98% of New Look’s creditors and landlords have voted in favour of pursuing a CVA. Alistair McGeorge, executive chairman of New Look, said:  “In order to help restore long-term profitability, it is clear we need to reduce our fixed-cost base. “We are therefore pleased to have gained the support of our creditors to address our over-rented store estate. Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this difficult time. “The CVA is one of a number of necessary actions we are taking to get the company back on track. “In addition to implementing other cost-saving initiatives, we are already focusing on driving future full-price sales by realigning our pricing to offer significantly better value, adding flexibility to our buying model and improving our speed to market. “Additionally, we have further strengthened our alignment between e-commerce and stores. “New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market.” New Look has identified 60 of its 593 stores in the UK for potential closure, alongside a further six sites which are sub-let to third parties. Final decisions on individual store closures will be made by the company and the stores’ respective landlords. Under the terms, the stores identified for potential closure are most likely to close within six to 12 months, subject to decisions by individual landlords. The proposal also includes revised lease terms and rent reductions ranging from 15-55% across 393 stores. The CVA has a duration of three years. Daniel Butters and Neville Kahn of Deloitte, the business advisory firm, are nominees to the CVA. To send feedback, e-mail amber.rolt@egi.co.uk or tweet @AmberRoltEG or @estatesgazette