UK-based fashion retailer New Look has finally got its company voluntary arrangement (CVA) approved!
The womenswear retailer said that on Tuesday it secured approval from over 75 per cent of unsecured creditors – including landlords. With this approval, more than 400 of its stores would switch to turnover-based rent model of up to 12 per cent.
More importantly, this would now help save more than 11,000 jobs.
The approval from creditors also means that the retailer completes a contingent debt-for-equity swap, bringing down the debt from more than £550 million to somewhere around £100 million.
New Look has also agreed to extend its primary working capital facilities with its lenders and a cash injection of £40 million to help enhance its turnaround plan.
Nigel Oddy, Chief Executive Officer, New Look, said that financial revamping that will now be done will help provide New Look a sustainable platform for future trading and investment.
He also said that the retailer still believes bricks-and-mortar stores have a huge role to play in the overall retail market.