The pressure on the high street was underlined still further yesterday when New Look acted to ease its heavy debt burden after a Christmas slowdown and a profit warning.
The fashion retailer said that it had agreed a debt-for-equity swap with its lenders, forcing its South African owner to cede majority control as the retailer fights to stay in business.
Under the proposal, New Look’s long-term debt will be cut from £1.35bn to £350m and it will raise £150m from bondholders to fund a restructuring and give it a cash injection.
