Paul Hastings LLP is advising leading clothing retailer New Look and its owner, the listed South African group Brait SE, on the Company Voluntary Arrangement announced by New Look Retailers Limited today.
The Company is today instigating a Company Voluntary Arrangement (CVA) and seeking approval from creditors on a plan to improve the operational performance of the Company.
Under the proposal, New Look has identified 60 out of its total 593 stores in the UK for potential closure1, alongside a further 6 sites which are sub-let to third parties. The proposal also includes a reduction in rental costs and revised lease terms across 393 stores.
The proposal involves a requirement to make redundancies from the stores which have been identified for potential closure, expected to be a maximum of 980 colleagues amongst the Company’s current UK staff base of 15,300 people. However, all efforts will be made to redeploy colleagues within the business where possible.
New Look is seeking creditor approval on the proposal, which is due on 21st March 2018. All UK stores will remain open as normal during the period of the proposal and the Company’s online sales channel will be completely unaffected by the proposed changes.
Daniel Butters and Neville Kahn of Deloitte LLP, the business advisory firm, have been appointed as Nominees to the CVA.
New Look Retail Group Limited operates a chain of retail stores that sell apparel, footwear, and accessories for women, men, and teenage girls. It is also involved in financing activities. The firm, led by Richard Collyer, is based in Weymouth.
Brait SE operates as an investment company. The Company focuses its investments in privately owned businesses across a range of industries. The Firm is based in Malta.
The Paul Hastings team in London was led by partner David Ereira (Picture), with partners Peter Schwartz, Edward Holmes, and Conor Downey, and associates Valean Gherendi, Carlos Ruiz, Corey Blake, Saffi Rayman, and John Lambillion.
Involved fees earner: David Ereira – Paul Hastings; Peter Schwartz – Paul Hastings; Valean Gherendi – Paul Hastings; John Lambillion – Paul Hastings; Edward Holmes – Paul Hastings; Carlos Ruiz – Paul Hastings; Corey Blake – Paul Hastings; Conor Downey – Paul Hastings;
Law Firms: Paul Hastings;