// New Look will need to convince at least 10 landlord creditors to support its CVA
// The CVA vote deadline is set for September 15
New Look is reportedly seeking to persuade at least 10 of its 20 largest landlord creditors to support its CVA.
The fast fashion retailer will need to convince half of the largest institutional landlords and shopping centre operators to back the proposals, or it risks collapse, Retail Week reported.
British Land, M&G, The Crown Estate, Hammerson, Aberdeen Standard, Unibail-Rodamco-Westfield and Intu are among the institutional landlords involved.
- New Look landlords reject CVA rescue plan
- New Look CVA “fails to meet best practice standards” BPF says
The CVA vote deadline is set for September 15.
Retail property owners have more than £360 million worth of voting rights.
Over the weekend, a group of New Look landlords rejected the retailer’s CVA rescue package which proposes moving the majority of its UK stores’ rent to a turnover basis.
Around ten landlords, including several big shopping centre owners, were reported by Mail on Sunday as rebuffing the plan.
Since New Look first launched the deal in late May, it has faced criticism for inaccuracies in its CVA proposal by the British Property Federation (BPF).
Last month, the membership organisation refuted the retailer’s case that its CVA proposal reflects its views on best practice.
“New Look and Deloitte have launched this CVA with reference in their communications that the British Property Federation’s views are reflected in the proposal – this is not true,” BPF chief executive Melanie Leech said.
New Look launched its CVA on August 26, and asked landlords across its 450-store portfolio to switch to turnover-linked rent contracts, offering other bonuses such as one-off payments and multiple lease breaks into the deal.