New Look in court battle with landlords over CVA
17 Mar 2021
New Look is reportedly facing off against four landlords in a High Court battle over the British fashion retailer’s restructuring plan.
The landlords, which include British Land and Land Securities, argue New Look should pay a “bare minimum market rent” on its stores as part of its company voluntary arrangement (CVA) which received approval from creditors last year.
That’s according to a skeleton argument ahead of the court case, seen by The Times.
Under the terms of New Look’s CVA, the retailer would pay no rent for 68 of its stores for three years, and just 2 percent on the turnover of 402 other stores.
The landlords said the switch to turnover-based rents “fundamentally rewrites” leasing agreements.
A long list of British fashion retailers have launched CVAs in the past year as they look to mitigate the impact of the pandemic, including LK Bennett, Ann Summers, Moss Bros, Clarks, New Look, AllSaints, Bair Group and Monsoon Accessorize.