New Look, the high street fashion chain, is close to finalising a £100m debt refinancing that will provide it with financial breathing space amid a worsening trading environment for clothing retailers.
Sky News has learnt that New Look is in advanced talks with Blazehill Capital and Wells Fargo about replacing a term loan which matures in June 2024.
Talks about refinancing the debt, the holders of which include Alteri, the specialist retail investor, Davidson Kempner and an arm of the Wall Street bank Goldman Sachs, have been ongoing for months.
A successful conclusion to the negotiations would come as a relief to New Look’s owners after two painful rounds of financial restructuring.
New Look, which trades from more than 400 stores in the UK and Ireland, has been working with advisers at Deloitte on exploring options for the £100m loan.
It marks the latest chapter in the chain’s journey towards a sustainable long-term capital structure following substantial store closures.
New Look is one of Britain’s largest omnichannel clothing chains, employing more than 10,000 staff and boasting 10m active customers.
The UK actually fared much better after COVID than first thought – here’s why it matters
Bigger-than-expected fall in house prices as rate hikes hit market
Octopus Energy gains two million new customers in Shell deal
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 said: “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 business continues to deliver on its strategic objectives, underpinned by its omnichannel strategy, fashion credentials and great value product.”
