Four landlords, including British Land and Landsec will make their cases against New Look’s CVA in the High Court today.
The high street retailer’s CVA was approved by creditors last year however the Landlords are now expected to argue that New Look should pay a ‘bare minimum market rent’ on its stores as part of its financial restructuring.
New Look was not the only high street brand to be impacted by the Covid-19 pandemic, brands including All Saints, Hotter Shoes, Ann Summers and Monsoon Accessories are among those that have used CVAs (Company Voluntary Agreements) to give their businesses an opportunity to pay back an agreed portion of debts over an agreed time period.
According to the terms of the agreement by creditors, New Look would pay zero rent on 68 of its stores and 2 per cent of turnover on its remaining 402. Although the deal was approved in September 2020, landlords including British Land and Landsec are now pushing back after being outvoted by other creditors initially.
