Landlords say no to New Look rescue plan
By Sarah Wood | 7th September 2020
A group of landlords has rejected fashion retailer New Look's CVA rescue package, which proposes moving the majority of its UK stores to paying a turnover rent.
Around 10 landlords, including the owners of large shopping centres, have turned down the plan, which will be voted on next week, as reported by Retail Gazette.
New Look, which has a store in Cheltenham, was criticised last month by the British Property Federation, which said the company was using its CVA to permanently rewrite its leases and that CVAs mustn't unfairly compromise commercial property owners.
New Look's proposal looks to change 402 leases to a turnover percentage of up to 12 per cent, with the remaining stores moving to nil rent. It includes an opportunity for landlords to exit the lease if they believe they can identify an alternative tenant on improved terms.
New Look's plan doesn't put jobs at risk or suggest that any stores will close permanently.
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