Brait’s former prize catch is gasping for air. Its UK fashion chain New Look has until next week to get approval from 75% of its creditors on a company voluntary announcement (CVA) — an arrangement between a financially distressed company and its creditors on how to repay its financial obligations. The CVA, proposed last week, could lead to New Look closing up to 60 of its 593 stores in the UK and cutting 980 jobs. The retailer is also hoping to get its landlords to slash rental costs and agree on revised lease terms across a further 393 stores. Executive chairman Alistair McGeorge, who was brought back last year after CEO Anders Kristiansen was sacked, says the chain has had "constructive discussions" with "key landlords and strategic partners". "Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed-cost base and restore long-term profitability," he says. According to Bloomberg Intelligence, N...
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