New Look, a high-end clothing shop, is rumoured to be in discussions with bankers about a potential US $ 100 million refinancing of its debt, which matures in June 2024. Just two years after its most recent restructuring, the business is reportedly collaborating with advisors Deloitte to secure the long-term financing.
A resolution may be anticipated in the upcoming months, and one person close to the company stated that it was wise to look into refinancing options at this time. With more than 400 locations operating throughout the UK and Ireland and more than 10,000 employees, New Look is one of the biggest clothing companies in the UK.
The chain has already undergone two restructurings, the most recent of which took place in 2021, in an effort to establish a long-term, sustainable capital structure. The announcement comes as the retailer’s network of locations continues to contract, with its most recent round of store closings being referred to as a ‘normal course of business’.
The plan coincided with a number of layoffs at the retailer’s headquarters, mainly affecting positions in its Weymouth and London service centres. All of this occurs as New Look tries to reinvent itself as an omnichannel store and shifts its focus to e-commerce after analysing its business model.
