New Look creditors approve turnaround plan

New Look’s Company Voluntary Arrangement (CVA) proposal has been approved by the company’s creditors and landlords, with 98% of votes in favour of the proposal.

The CVA was launched on the back of a tough 2017 which saw a widening of losses and ended with poor Christmas sales. The aim is to improve operational performance by reducing its UK store estate and rental cost base. Alistair McGeorge, Executive Chairman at New Look, says: “In order to help restore long-term profitability, it is clear we need to reduce our fixed cost base. We are therefore pleased to have gained the support of our creditors to address our over-rented store estate. Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this difficult time.”

The CVA, he adds, is one of a number of necessary actions to get the company back on track. In addition to implementing other cost-saving initiatives, the retailer is focusing on "driving future full price sales by realigning our pricing to offer significantly better value, adding flexibility to our buying model, and improving speed to market. Additionally, we have further strengthened our alignment between e-commerce and stores. New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market.”