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.
Hands up if you're using Valentine's Day as an excuse to buy cute underwear? Us too! 🙋♀️ https://t.co/bzduJxy2dJ pic.twitter.com/WP3AUnGuZR
— New Look (@newlook) January 13, 2019
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