Fashion chain New Look could go into liquidation
PUBLISHED: 13:50 09 September 2020 | UPDATED: 13:50 09 September 2020
The company, with two shops in Norwich, one in King’s Lynn, Great Yarmouth as well as Lowestoft and Beccles, Suffolk and Wisbech, Cambridgeshire, warned that it could be forced to consider “less favourable alternatives”, which are understood to include liquidation, if creditors do not back its proposals.
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Last month, the fashion chain said it was canvassing sales interest in a bid to secure its long-term future. However, a deadline for bids passed on Tuesday without progress after no bids were made for the whole firm.
The company’s future will now rely upon securing backing from landlords for its company voluntary arrangement (CVA) proposals, which go to a vote on September 15.
It will need at least 75% of creditors to give the deal the thumbs up for it to pass.
In August, New Look announced the CVA deal to help bring down its rent and “safeguard 12,000 jobs” at the business.
It said it is asking landlords to accept new lease contracts on its stores which are based on turnover as it battles the “challenging retail market environment”.
It comes as another fashion store Quiz announced it will not be reopening 15 shops – although one in Norwich is staying open.
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