// New Look’s CVA rejected by two property landlords
// British Land owns 19 New Look stores, and Landsec owns 10
// Hammerson is also considering voting against the CVA
Two property giants have reportedly rejected New Look’s CVA proposal as the retailer’s future hangs in the balance.
British Land, which owns 19 New Look stores, and Landsec, which owns 10, will oppose its planned CVA on Tuesday, Sky News reported.
Meanwhile, Bullring centre owner Hammerson is also said to be considering voting against the CVA.
- Boohoo circles New Look as it lurches towards administration
- New Look fails to attract interest in sale ahead of CVA deadline
In total, the three retail property giants own just over 40 of New Look’s 490 stores across the UK.
The fast fashion retailer is seeking for a second major financial restructuring in under two years.
If approved, its CVA would result in the company switching its rent payments at the majority of its stores to a formula calculated according to their turnover.
New Look said the proposed CVA involves a material reduction of debt, extension of the company’s banking facilities and a cash investment of £40 million.
It represents the “best outcome” for all stakeholders, including employees, suppliers, landlords and creditors.
Alongside the rent cuts, New Look is also seeking for a debt-for-equity swap.
Over the weekend, online retailer Boohoo expressed interest in acquiring New Look if it collapses into administration.