According to recent reports, popular fashion retailer New Look is in discussions regarding refinancing, with a specific focus on a term loan that is set to expire next year. To aid in exploring various options for the refinancing process, the company has sought assistance from Deloitte, marking its second restructuring within a span of just two years. The debt is currently held by a variety of investors, including Alteri, Davidson Kempner, and a unit of Goldman Sachs. It is anticipated that reaching a resolution on the refinancing matter will take several months.

In 2020, New Look underwent a Company Voluntary Arrangement (CVA), which proved successful in securing favorable rent agreements for a significant number of its stores. This came after a previous CVA in 2018, which unfortunately led to store closures and job losses. However, despite these restructuring efforts, industry sources suggest that the ongoing refinancing talks should not be interpreted as a sign of weakness. In fact, reports claim that New Look has been performing well, prompting a proactive evaluation of its options.

As one of the key players in the UK fashion retail industry, New Look currently holds the second position in the womenswear sector. Its financial performance for the fiscal year ending on March 25 demonstrates its strong market position, with recorded revenues of £895 million. Furthermore, the company’s EBITDA experienced an impressive 67% increase, reaching £42.2 million. These refined financial figures highlight New Look’s commitment to adapting and optimizing its strategies in order to sustain its presence in the market and continue its growth trajectory.

Links:
1. New Look
2. Deloitte