Fashion retailer New Look is on a knife edge after group of major landlords reject rescue plan
- New Look has asked landlords to switch to turnover-linked rent contracts
- But around ten landlords have already rebuffed the plan
The future of fashion chain New Look is on a knife edge after a group of major landlords ‘flatly rejected’ its rescue plan.
The 450-store chain, with more than 10,000 staff, has asked landlords to switch to controversial turnover-linked rent contracts and offered sweeteners such as one-off payments and multiple lease breaks in return.
But The Mail on Sunday understands around ten landlords – including several big shopping centre owners – have already rebuffed the plan which will be voted on by creditors in nine days’ time. That leaves the chain ‘facing Armageddon’, according to one source.
New Look has asked landlords to switch to controversial turnover-linked rent contracts
‘If this fails, with no credible buyer emerging, the fallout is most likely liquidation,’ said another.
One retail rival said: ‘Big landlords feel like they need to be seen taking a stand. But if they are hoping other creditors will step in, they are playing with fire because this could all go very wrong very quickly.’
New Look said the plan ‘represents the best outcome for all stakeholders’.