New Look, the excessive road trend chain, is near finalising a £100m debt refinancing that can present it with monetary respiration house amid a worsening buying and selling atmosphere for clothes retailers.
Sky News has learnt that New Look is in superior talks with Blazehill Capital and Wells Fargo about changing a time period mortgage that matures in June 2024.
Talks about refinancing the debt, the holders of which embrace Alteri, the specialist retail investor, Davidson Kempner and an arm of the Wall Street financial institution Goldman Sachs, have been ongoing for months.
A profitable conclusion to the negotiations would come as a aid to New Look’s homeowners after two painful rounds of economic restructuring.
New Look, which trades from greater than 400 shops within the UK and Ireland, has been working with advisers at Deloitte on exploring choices for the £100m mortgage.
It marks the newest chapter within the chain’s journey in the direction of a sustainable long-term capital construction following substantial retailer closures.
New Look is one among Britain’s largest omnichannel clothes chains, using greater than 10,000 workers and boasting 10m lively prospects.
It is the second-biggest participant within the UK womenswear class.
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In the monetary 12 months ended 25 March 2023, New Look reported whole income of £895m and earnings earlier than curiosity, tax, depreciation and amortisation of £42.2m – a year-on-year enhance of greater than 67%.
A New Look spokeswoman stated: “With New Look’s c.£100m term loan maturing in June 2024, the group is currently in positive discussions with advisers and potential lenders regarding a refinancing.
“The enterprise continues to ship on its strategic goals, underpinned by its omnichannel technique, trend credentials and nice worth product.”
Content Source: information.sky.com