UK lingerie and clothing retailer New Look has turned to an orthodox business strategy to work its way out of debt.
The brand, which is reported to have racked up approximately £1.2bn worth of debt, has requested the landlords of its 70 worst performing stores to drop rents by up to 60%.
According to Retail Gazette, in the 70 stores where New Look would be paying 40% of its current rent, the company is also reserving the right to close the branch.
A further 380 stores will seek a rent adjustment within the coming weeks, while the brand’s top performing 150 stores will remain unaffected.
The publication reported that a spokesperson for the company said: “The company has previously indicated that a potential CVA is being considered as part of a range of options to improve the operational performance of the business.”
“No final decision has been made regarding a CVA, which would require consent from our creditors.”