New Look has warned it could collapse if landlords do not agree to a controversial restructuring deal to allow it to pay cheaper rents.
The retailer sounded the alarm after financial advisers at Perella Weinberg failed to find a buyer for the whole business as part of a separate process to help steady the ship.
The chain’s future is contingent on landlords approving a so-called company voluntary arrangement (CVA) to pay rent on its 496 shops based on revenues for each site.
If the process is successful, it will safeguard 12,000 jobs and help New Look wipe out £440m of debt. Otherwise it will have to consider “less favourable alternatives”, it said.
Its fate will be decided on Sept 15, two years after it went ahead with another CVA. At the time, it won the approval of almost all creditors and landlords but was forced to make