Home Business New Look fashions talks with lenders about £100m debt

New Look fashions talks with lenders about £100m debt

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The clothing retailer has hired Deloitte to advise it on options for refinancing a term loan which expires in 2024, two years after its latest restructuring, Sky News learns.
City editor
Friday 26 May 2023 13:06, UK
New Look, the high street fashion chain, has kicked off talks with its lenders about refinancing £100m of debt amid a tough trading outlook for Britain’s major clothing retailers.
Sky News has learnt that New Look is working with advisers at Deloitte on exploring options for a term loan which matures in June 2024.
Among the holders of the debt are Alteri, the specialist retail investor, Davidson Kempner and an arm of the Wall Street bank Goldman Sachs.
Sources said that New Look, which trades from more than 400 stores in the UK and Ireland, expected to reach a resolution on the refinancing talks in the coming months.
It marks the latest chapter in the chain’s journey towards a sustainable long-term capital structure following two painful restructurings, the more recent of which concluded in 2021.
One source close to the company said it was prudent to explore refinancing options at this stage, and that it was trading well.
New Look is one of Britain’s largest omnichannel clothing chains, employing more than 10,000 staff and boasting 10m active customers.
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It is the second-biggest player in the UK womenswear category.
In the financial year ended 25 March 2023, New Look reported total revenue of £895m and earnings before interest, tax, depreciation and amortisation of £42.2m – a year-on-year increase of more than 67%.
A New Look spokeswoman declined to comment.
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