New Look bondholders have appointed Rothschild investment bank to help protect their interests in case the retailer’s financial struggles leads to a corporate overhaul.
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The news comes after reports last month that bondholders had formed a committee and sought legal advice from law firm Sidley Austin, to help protect their assets amid fears that New Look’s financial overhaul could be wider than planned.
In addition, according to The Times, analysts expect the fashion retailer will report continued losses and falling sales when it unveils its latest trading update this week.
Since the new year started New Look has reportedly been circled by potential buyers – mostly hedge funds or vulture funds – hoping to capitalise on its current financial weakness and plummeting bond prices.
A source told The Mail on Sunday that the value of New Look’s debt had fallen in recent weeks, and that “people in the buyout market are looking at it”.
The plunge in New Look’s bond prices came about after reports it was considering a company voluntary agreement (CVA) to salvage and restructure its business.
The retailer is also reportedly looking to reducing its physical store portfolio, with the closure of 60 UK stores.
In late 2017 New Look’s parent company Brait wrote down the retailer’s value to zero.
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