The retailer has taken other proactive measures such as substantially minimizing marketing fees, pausing all output, delaying all significant Capex tasks and halting recruitment.
New Look has confirmed it is actively pursuing authorities assist including a business costs exemption for twelve months, worker charge assist, deferral of tax and countrywide insurance plan payments, and gaining access to the Covid Corporate Financing Facility.
The update comes right after Drapers disclosed that New Look has put a halt on all current and potential output, and is offering thousands of workforce unpaid go away in order to relieve the influence of the coronavirus outbreak.
The retailer made the selection to close all 480 United kingdom retailers on 21 March, and all 28 retailers in the Republic of Ireland on twenty March. This was prior to the government’s announcement that all non-crucial retailers should really close in an try to sluggish down the unfold of the virus.
Main government Nigel Oddy said: “Our complete precedence is to maintain our clients and colleagues harmless, which underlined our selection to briefly close our retailers in progress of authorities advice to do so. Offered the unprecedented instances that we – like all merchants – are working in, we have taken a array of decisive and immediate steps to assistance us navigate through the coming period of time.
“We are self-assured that a mixture of these ongoing steps, the significant economical and operational development we have made in excess of the past two decades with our turnaround plan, and the toughness of our brand name imply that we will be properly-positioned to return to growth when a extra normalised working setting resumes.”
New Look famous that it “entered the Covid-19 outbreak with strengthened liquidity”, obtaining finished its economical restructuring in Might 2019. It confirmed it has no near-expression maturities on its extensive-expression credit card debt funding which matures in 2024 and “has the ability to toggle cash curiosity to PIK [Payment-In-Kind] to supply further credit card debt servicing overall flexibility.”