New Look, Jigsaw, River Island all mull CVAs
New Look is believed to be planning a second CVA with Deloitte expected to come on board as adviser this week. According to a story in the Mail, as part of the CVA, the company will be seeking new lease contracts for 450+ stores with the new deals to be based on turnover at the individual stores.
More and more retailers have been seeking rent deals linked to turnover in recent periods but this would be the first time that it will have been applied across an entire estate in the UK.
New Look’s bondholders are believed to be supporting the plan but it will need landlord agreement to get through and failure to achieve that agreement could see more store closures than planned.
The New Look news comes as fashion retail peers Jigsaw and River island are also said to be mulling CVAs.
Meanwhile Jigsaw could launch its restructuring as early as this week and again, store closures are expected. The company employs around 900 people and has been negotiating rents with its landlords, although it's unclear how many of its shops might shut.
The company has also reportedly drafted in advisors to help it find new investment or possibly sell itself.
River Island is also looking at a restructuring that could include a CVA with the same target as New Look and Jigsaw — rent reductions and closures of those among its 300 stores that are no longer viable.
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