Struggling retailer New Look has agreed to a restructuring plan to slash its long-term debt by £1bn as it seeks to position the group for a return to profitability.
New Look, which is owned by South African investment firm Brait, had last year staved off a potential collapse into administration when UK creditors and landlords backed a plan enabling it to close 60 UK stores.
The group announced today that it had secured agreement for a debt-for-equity swap proposal to reduce its long-term debt from £1.35bn to £350m together with a new capital raise of £150m funded by the issuance of new bonds.
“Today’s agreement represents a critical step in our turnaround plans and lays the foundations to secure the future and long-term profitability of New Look by materially deleveraging our balance sheet and providing us with the financial flexibility to better attack our future,” said Executive Chairman Alistair McGeorge.
— New Look (@newlook) January 13, 2019