New Look enters refinancing talks over £100m debt
New Look has reportedly entered talks with lenders to discuss the refinancing of £100m of debt, just two years after its last restructuring.
The struggling fashion retailer is working with advisers at Deloitte regarding options for a loan which matures in June 2024, Sky News has reported.
The holders of the debt include Alteri, Davidson Kempner, and an arm of Wall Street giant Goldman Sachs.
New Look, which trades from some 400 UK stores and employs over 10,000 staff, is expected to reach a resolution regarding financing talks within the coming months.
The company last restructured following a CVA in 2020 which saw the retailer move to more favourable rent structures in some of its stores. It had also undergone a CVA in 2018 in which a number of stores were closed with many jobs lost.
In the financial year ending 25 March 2023, the retailer reported total revenues of £895m and earnings (EBITDA) of £42.2m, a 67% increase year-on-year. A source close to the retailer reportedly said that it was a good time to refinance, considering the current trading outlook.