New Look & Iceland shareholder Brait mulls financial restructuring

New Look has halted its production plans and asks employees to voluntarily take unpaid leave due to the coronavirus outbreak.It has given its 13,000-strong workforce the option of unpaid voluntary leave, with a reduction of hours or the opportunity to use their holiday allowance.
New Look pauses all production amid Covid-19 pandemic.
// New Look & Iceland shareholder Brait seeks financial restructuring within the next 5 years
// The firm also announced a recapitalisation plan including an equity raise

New Look and Iceland’s shareholder Brait is looking to realise its investments within five years.

The investment holding company, which also has a share in Virgin Active, said it is considering a financial restructuring.

Brait had formerly acted as a “long-term investment holding company”.


It will now “adopt a new strategy that will focus on maximising value through the realisation of its existing assets in the portfolio over the next five years and returning capital to shareholders”.

The firm also announced a recapitalisation plan including an equity raise, a refinancing of revolving credit and the d launch of a new convertible bond to raise between R14.4 billion and R14.7 billion altogether, “providing a holistic solution for Brait”.

“The deal represents a positive step forward and a holistic solution for Brait following extensive discussions to materially reduce the debt on its balance sheet,” Brait chairman Jabu Moleketi said.

“We have a portfolio of distinctive, financially strong and cash generative investments and have today outlined a way forward that involves a strategic change of direction.”

Click here to sign up to Retail Gazette‘s free daily email newsletter


Please enter your comment!
Please enter your name here