The battle has begun! British fashion retailer New Look entered High Court yesterday (17 March) with four of its landlords over company voluntary arrangement (CVA).
Back in September 2020, the retailer’s CVA had proposed switching of 68 stores to zero rent and 402 to turnover-based rent model and this had got approval from over 75 per cent of unsecured creditors that included landlords.
Also Read: New Look’s CVA finally gets approved! 11,000 jobs saved
However, four landlords later challenged New Look over its restructuring scheme.
Reportedly, the landlords have said that a bare minimum market rent has to be paid, but this is not the case under the restructuring plan.
The landlords also told media that changing over to turnover rent model ‘fundamentally rewrites’ leasing agreements on a permanent basis.
They also expressed concerns regarding switching to payments in arrears, which they called unfair.
The womenswear retailer, however, is confident of overcoming the hurdles and said that it will continue its focus on further establishing itself as a prominent fashion retailer in the country.
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