Fashion retailer New Look has announced that it has not received any bids for the company after its strategic review and unveiling of its Company Voluntary Arrangement (CVA) plan. Despite exploring buyer interest and alternative recapitalisation transactions, no bids were received for the share capital or alternative recapitalisation transactions, although there was some interest in certain assets.

On a positive note, New Look’s debt-for-equity swap, aimed at reducing its debt and bringing in £40m ($52m) in new cash investment, has gained significant support from its secured financial creditors. The plan has received approval from all of its revolving credit facility lenders and operating facility lenders, as well as over 90% of bondholders, meeting the required consent thresholds.

However, the success of the CVA plan depends on securing the support of unsecured creditors, which requires a 75% majority vote. The vote is scheduled for 15 September and its outcome will determine whether the financial restructuring can proceed. Concerns have been raised by landlords, raising doubts about achieving the necessary support. If the unsecured creditors do not vote in favor, New Look’s directors will have to consider less favorable alternatives for the company and its stakeholders.

New Look has not provided any insight into its expectations for the vote or the potential alternatives it would consider. Speculation suggests that liquidation could be a possibility if the CVA plan fails. Ultimately, the outcome will depend on the company’s efforts to secure support for its plan or explore other options as required.

Please find below two useful links related to the article:
BBC News: New Look: No bids for stricken fashion chain
Retail Gazette: New Look debt-for-equity swap hits trouble due to landlords’ stance on rent