New Look, the popular British fashion retailer, has successfully completed a significant refinancing deal in order to reduce its long-term debt and strengthen its financial position. The company received approval from the High Court for its Scheme of Arrangement, allowing it to secure the funding needed to execute its strategy.

As part of the deal, New Look implemented a debt-for-equity swap, which effectively reduced its senior debt from around £550 million to just £100 million. This reduction not only relieves the financial burden on the company, but also decreases the interest payments associated with servicing the loans, leading to improved cash flow.

In addition to the debt restructuring, New Look has extended its primary working capital facilities, providing further financial support without any upcoming maturity dates. The company has also secured an additional £40 million of new capital, which will be instrumental in supporting its business plan and driving growth initiatives.

Nigel Oddy, the CEO of New Look, expressed his satisfaction with the successful refinancing, stating that it has significantly strengthened the company’s financial position. However, he also acknowledged the challenges presented by the current market conditions, particularly with the temporary closure of New Look stores in England due to the latest lockdown measures.

Recognizing the uncertainties brought about by the COVID-19 pandemic in the retail industry, New Look understands the potential obstacles it may encounter in the coming months. Nevertheless, the company remains hopeful that the refinancing deal and its strategic plans will help navigate through these difficult times and ensure a sustainable trading platform for its future operations.

Despite the current challenges, New Look remains dedicated to its mission of providing affordable and trendy clothing to its customers. With its improved financial stability and flexibility, the company aims to adapt to changing consumer preferences, invest in its digital capabilities, and continue delivering an enjoyable shopping experience both online and offline.

The completion of this refinancing deal represents a significant milestone for New Look as it works towards overcoming the unprecedented challenges posed by the global pandemic. The fashion retailer remains determined to emerge stronger, more resilient, and ready to embrace the future of retail, regardless of what it may entail.

Useful links:
1. New Look Investor Resources
2. New Look Sustainability Initiatives