New Look wins extension to crucial loan

EMBATTLED f ashion c hai n New Look has agreed terms on a crucial bank loan as it prepares to overhaul hundreds of lease contracts.

Lenders agreed an extension to an £80 million credit facility in recent days. That provides the 480store chain with breathing space as it steps up talks with landlords to switch from fixed rent contracts to turnover- linked payments on all its stores.

Fashion industry sources said a restructuring process known as a CVA remains an option for New Look, forcing landlords to the negotiating table while aiming to keep t he majority of stores open. The sources said New Look, l i kely advised by Deloitte, is not expected to make a final decision on how to proceed until next month.

High streets have been devastated by the lockdown. A New Look spokesman said: ‘ New Look i s committed to s eeking a consensual agreement with landlords to move to turnover rents as we continue to navigate these uncertain times together.’