UK fashion retailer New Look has completed its debt refinancing, allowing the company more financial strength to execute on its strategy.
The retailer, which last month had its company voluntary arrangement (CVA) approved by creditors, said today (11 November) that following the High Court’s sanction of New Look Financing’s Scheme of Arrangement, it has completed its comprehensive financial recapitalisation transaction.
The transaction will provide New Look with the financial strength, funding and flexibility to execute on its strategy. This includes a significant deleveraging of its balance sheet, an extension of its primary working capital facilities, and new money investment. The company is injecting GBP40m (US$53.1m) of new capital to support its business plan.
“I would like to thank our banks, bondholders, landlords and creditors for their support during our financial recapitalisation process and CVA,” said CEO Nigel Oddy. “Completion of the transaction today means we now have significantly enhanced financial strength and flexibility, and a sustainable platform for future trading and investment.
“Looking ahead, notwithstanding the challenging market conditions, we are focused on delivering our strategy to enhance our position as a leading convenient broad appeal fashion destination.”
In September, New Look was calling on its landlords to back its restructuring plans after failing to attract a buyer. The fashion retailer had a previous CVA approved in March 2018, which aimed to improve the operational performance of the company.