New Look, the high street fashion chain, is close to finalising a £100m debt refinancing that will provide it with financial breathing space amid a worsening trading environment for clothing retailers.

Sky News has learnt that New Look is in advanced talks with Blazehill Capital and Wells Fargo about replacing a term loan which matures in June 2024.

Talks about refinancing the debt, the holders of which include Alteri, the specialist retail investor, Davidson Kempner and an arm of the Wall Street bank Goldman Sachs, have been ongoing for months.

A successful conclusion to the negotiations would come as a relief to New Look’s owners after two painful rounds of financial restructuring.

New Look, which trades from more than 400 stores in the UK and Ireland, has been working with advisers at Deloitte on exploring options for the £100m loan.

It marks the latest chapter in the chain’s journey towards a sustainable long-term capital structure following substantial store closures.

New Look is one of Britain’s largest omnichannel clothing chains, employing more than 10,000 staff and boasting 10m active customers.

The UK actually fared much better after COVID than first thought – here’s why it matters

Bigger-than-expected fall in house prices as rate hikes hit market

Octopus Energy gains two million new customers in Shell deal

It is the second-biggest player in the UK womenswear category.

In the financial year ended 25 March 2023, New Look reported total revenue of £895m and earnings before interest, tax, depreciation and amortisation of £42.2m – a year-on-year increase of more than 67%.

A New Look spokeswoman said: “With New Look’s c.£100m term loan maturing in June 2024, the group is currently in positive discussions with advisers and potential lenders regarding a refinancing.

“The business continues to deliver on its strategic objectives, underpinned by its omnichannel strategy, fashion credentials and great value product.”

Related posts:

Bank of England governor downplays fears of deep COVID scarring Changes in assumptions about how long people live help Phoenix profits soar Train and bus operators will no longer enforce mask wearing in England from 19 July One in five hospitality and retail workers self-isolating, MPs told Wage growth, record fuel prices and a virtual fashion week Petrol prices hit new records despite plummeting wholesale costs Why the EU is nervous about imposing a ban on Russian oil and gas Heathrow warns on investment as regulator eyes reduction in passenger charges Rolls-Royce pay award to avert strikes, retail sales fall and mince pie maker deals with soaring costs Goldman lures ex-Bank of England chief as international chair Disgraced crypto boss ‘donated stolen customer funds to politicians’ Russia hikes interest rates as rouble plummets