New Look reportedly in debt refinancing talks
Fashion retailer New Look is believed to be in talks about refinancing with the focus being a term loan that expires next year.
That’s according to Sky News, which said the retailer has hired Deloitte to advise it on options for the refinancing just two years after its last restructuring. New Look declined to comment.
Sky said holders of the debt include specialist retail investor Alteri, as well as Davidson Kempner and a Goldman Sachs unit. It could take several months to reach a resolution, the news site added.
As mentioned, the company last restructured two years ago after a CVA in 2020 that saw it switching to more favourable rent deals on a big chunk of its stores. It had also launched a CVA in 2018 that saw major store closures and job losses.
But the report also said the refinancing talks aren’t necessarily a sign of weakness with a source telling Sky that New Look was trading well and that it made sense to look at its options now.
New Look is one of the major players in UK fashion retail and is in second place in womenswear.
In the financial year ended March 25, its revenue reached £895 million and EBITDA rose 67% to £42.2 million.
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