The recent landlord success in relation to the failed CVA will no doubt have landlords scrutinising how they might also be affected by New Look's proposals. Landlords of successful stores will also no doubt be putting contingency plans in place in case the CVA fails.
Struggling high street fashion retailer New Look is going ahead with a CVA that could result in 60 store closures. The proposal to reduce its UK store estate and rental costs comes amid challenged trading performance and a difficult retail environment. The company is today instigating a company voluntary arrangement and seeking approval from creditors on a plan to improve the operational performance of the company. Under the proposal, New Look has identified 60 out of its total 593 stores in the UK for potential closure, alongside a further six sites sublet to third parties. The proposal also includes a reduction in rental costs and revised lease terms across 393 stores. New Look is seeking creditor approval on the proposal, which is due on 21 March.