New Look issues ultimatum to landlords
By Sarah Wood | 30th June 2020
Fashion retailer New Look has issued an ultimatum to landlords, as it seeks to move to turnover-based rents as the coronavirus crisis continues.
New Look, which has a store in Cheltenham, has hired a consultancy firm in an effort to move its entire 500-strong store estate across to turnover-based rents, increasing the possibility of falling into a pre-pack administration if the discussions are unsuccessful, as reported by Retail Gazette.
Talks between the retailer and landlords have been ongoing throughout June. New Look is concerned that some landlords will block a move to turnover rents.
It is the latest in a long line of struggles for the retailer, which went through a financial restructure in January 2019.
Although it is considering a pre-pack administration, New Look said it is the last thing it wants.
New Look employs 12,000 people across its UK and Ireland business.
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