// New Look landlords in the High Court will seek to oppose its plans to enter examinership
// They have said that the move to seek court protection is “contrived”
// If New Look is successful in appointing an examiner, the resulting scheme will lead to the permanent repudiation
The High Court is reportedly due to decide if New Look can enter examinership and seek rent cuts despite being profitable.
This Friday, a group of landlords in the High Court will seek to oppose plans by the retailer to enter examinership, The Sunday Times reported.
The landlords argue that New Look is not insolvent, and therefore does not need court protection.
They have also said that the move to seek court protection is “contrived”, and is designed to use the process to rewrite tenancy agreements.
The landlords said they have failed to see a difference between New Look and the many other retailers with whom they are currently negotiating deals on rent.
If New Look is successful in appointing an examiner, the resulting scheme will lead to the permanent repudiation and renegotiation of leases.
Although New Look was first launched in Somerset, England, it was acquired by South African investment company Brait in 2015.
By 2017, Brait had written down the value of its investment to zero and brought in investment fund Avenue Capital as investors.
In August, Brait negotiated its second CVA within two years, converting debt to equity and pushing through a deal with its landlords.
Earlier this month, New Look’s CVA was given the official go-ahead after creditors met to today and approved the proposals with a majority vote in favour.
The fashion retailer’s CVA entails switching more than 400 of its UK stores to a turnover-based rent model, a three-year rent holiday on its 68 remaining stores, and enhanced landlord break clauses.
No store closures are featured in the CVA, and all 11,000-plus jobs have been saved.