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New Look bondholders appoint Rothschild to advise on interests

By Paul Norman - Monday, February 05, 2018 10:30

New Look bondholders have appointed Rothschild investment bank to advise on protecting their interests as the troubled retailer is linked to a CVA and corporate restructuring.

According to the Sunday Times New Look bondholders have teamed up to seek advice ahead of a trading update this week expected to shed some light on its plans for a financial turnaround.

A number of potential buyers are reportedly eyeing the high street fashion chain and bondholders are are seeking advise on how best to protect their interests, the Times said.

New Look’s bond prices collapsed following reports at the beginning of the year that the group was considering a company voluntary agreement (CVA) to restructure its finances.

Sky News first reported first that the fashion retailer is weighing a plan to close about 10% or 60 of its 600 British stores while seeking rent reductions. The company has not commented on its plans.

But it is thought the South African-owned chain is considering employing a Company Voluntary Arrangement (CVA), the process commonly used by struggling retailers to restructure financial obligations with creditors which has most recently been employed by Toys R Us and Byron Burgers.

CBRE has been appointed to provide advice on the stores portfolio.

Department store giants Debenhams and House of Frasers have also both followed tough Christmas trading periods with reports of plans to cut rents and surplus space.

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