New Look’s largest landlords will vote towards the style retailer’s newest rescue plan on Tuesday, throwing its survival into additional doubt amid the UK’s deepening excessive avenue disaster.
Sky News has learnt that British Land, which owns 19 New Look shops, and Landsec, which owns 10, will oppose its deliberate firm voluntary association (CVA) in an important vote on Tuesday.
Hammerson, the proprietor of London’s Brent Cross purchasing centre and Birmingham’s Bullring, can be mentioned to be leaning in direction of voting towards the CVA.
In complete, the three retail property giants personal simply over 40 New Look shops – a small proportion of its 490 UK outlets.
The style retailer, which is trying to push by way of its second main monetary restructuring in below two years, has a very fragmented landlord base, with roughly 350 totally different house owners of its UK retailers.
If accredited, its CVA would consequence within the firm switching its hire funds on the majority of its shops to a method calculated based on their turnover – a proposal that has angered the British Property Federation, which represents industrial landlords.
A New Look spokesperson mentioned: “Our proposed CVA and consequential recapitalisation transaction, which entails a fabric discount of debt, extension of the corporate’s banking amenities and a money funding of £40m represents the most effective consequence for all stakeholders, together with staff, suppliers, landlords and all different collectors.
“Our landlords have given us beneficial and constructive suggestions since we initiated discussions in May concerning a required transfer to turnover rents.
“Our CVA proposal recognises this in numerous materials modifications we’ve got made since our preliminary proposal, together with enhanced landlord break clauses, unchanged service costs, minimal hire ranges, and an elevated rating of leases.”
Alongside the hire cuts, New Look can be proposing an extra debt-for-equity swap.
Its effort to discover a solvent purchaser was unsuccessful, though The Sunday Times reported on the weekend that Boohoo, the web clothes retailer, was fascinated with shopping for New Look if it collapses into administration.
The chain employs 12,000 individuals, making it one of many largest retailers to face an existential disaster because the begin of the COVID-19 disaster.
Debenhams is among the many different chains in peril of disappearing from UK excessive streets.
British Land and Landsec declined to remark, whereas Hammerson didn’t reply to a request for remark.