- Huw Hughes |
British fashion retailer New Look has reportedly warned landlords it could launch a pre-pack administration deal if they block its attempt to move to turnover-based rents.
According to Retail Week, multiple sources have said New Look has hired consultancy firm CBRE to help it move its 500-strong store estate across to turnover-based rents, and that a pre-pack administration could be possible if those talks fall through.
A New Look spokesperson said: “We are committed to seeking a consensual agreement with landlords to move to turnover rents, and to work in partnership with them as we continue to navigate these incredibly challenging and uncertain times together.”
It comes as a growing number of retailers are calling for these types of rent agreements, which see rents linked to each store’s sales.
If the pre-pack administration goes ahead, it would be the second financial restructuring the retailer has undergone in less than two years following its debt-for-equity swap with stakeholders in January 2019.
Photo credit: FashionUnited