New Look has announced the completion of a “comprehensive financial restructuring” that has seen its long-term debt reduced from 1.35 billion pounds to a more manageable 350 million pounds.
The British retailer also announced a 150 million pound capital injection in the form of new senior secured notes (SSNs), which are being used “to repay the 80 million pound bridge facility, settle transaction costs and provide the company with additional liquidity to support the future development of the business.”
The company implemented the transaction via schemes of arrangement under the UK Companies Act 2006, as well as through the sale of New Look Limited along with its key operating subsidiaries to a new holding group owned by a combination of the new SSN noteholders, existing noteholders and management.
Commenting on the announcement in a statement, Alistair McGeorge, executive chairman at new Look, said: “Today’s completion represents a significant milestone in our turnaround process and a major endorsement from our stakeholders in the strength of our brand and in management’s ability to deliver enhanced profitability through the wider strategy already being implemented.
“With a materially deleveraged balance sheet and a more flexible capital structure, we now have a stable operating platform, which positions us well to respond to challenges and grasp new market opportunities.
“We have already implemented significant improvements across our business, returning to a proven broad appeal product to rebuild our position in the UK womenswear market, enhancing our multichannel offering and bringing significant operational expertise to our business with the recent appointment of Nigel Oddy as chief operating officer.
“With a highly experienced management team and a stable operating platform in place, we are now positioned to deliver on our wider plans and attack our future.”
Photo credit: New Look, Facebook