New Look is seeking to offer landlords of 400 of its stores a turnover based rent deal, with the rest moving to a no rent scenario. It will also allow landlords the option of revising landlord lease breaks across all stores in the event that improved terms can be agreed with new tenants.
Its CVA is based upon keeping all stores operational, paying all services charges on turnover based agreements, and the full settlement of all service charge arrears across its entire store estate.
“We are launching this CVA out of absolute necessity and are calling on our landlords to agree a turnover rent model for our stores which will put us into a position to be able to complete a financial restructuring agreed with our creditors that will secure the future of New Look and our employees,” said Nigel Oddy, CEO, New Look. “We still fundamentally believe the physical store has a significant part to play in the overall retail market and our omnichannel strategy.”
New Look aims to retain all of its 11,200 staff.
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