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A New Look for retailers? Here’s what matters in the post pandemic world

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It has been what Sir Alex Ferguson used to call “squeaky bum time” for fashion retailer New Look these past few days.

On Monday it was being reported that British Land and Landsec, two of the chain’s biggest landlords, were preparing to vote against the proposed company voluntary arrangement (CVA) which would have switched the majority of New Look’s rental payments to a formula calculated according to turnover, and therefore directly linked to its financial health.

Read more: New Look landlords approve switch to turnover rents

The bottom line was that the CVA would have slashed New Look’s rent in the short term, giving it breathing space in the economic squeeze, but the landlords were unwilling to bear that cost themselves.

A rejection of the terms of the CVA looked likely to be fatal to the company. Phrases like “on a knife-edge” and “future in the balance” were being bandied about, and some commentators had gone as far as to speculate that Boohoo Group might make a bid for New Look if the chain collapsed.

Andrew Busby, a veteran retail analyst, tweeted grimly: “If landlords reject the New Look proposal tomorrow, they’ll basically be........

© City A.M.

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