New Look seeks three-year rent holiday in restructuring plan to safeguard 11,200 jobs – Yahoo Sports

Creditors and landlords are due to vote on the CVA on 15 September. Photo: Keith Mayhew/SOPA Images/LightRocket via Getty Images

High street chain New Look, is attempting to secure a three-year rent holiday for its stores as it formally launches a major restructuring plan involving a company voluntary agreement (CVA) to safeguard 11,200 jobs.

In an unusual step, New Look asked landlords to change the way it pays rent, by resetting 402 of its stores to turnover-based rent to align rent payments with future performance.

Meanwhile, under the proposals another 68 of its stores will have “nil rents” for the rest of their lease period.

The turnover percentage will be set at 12% as New Look looks to secure its second financial rescue deal in 18 months.

Earlier this month, the chain confirmed it was undertaking a CVA to reduce its debt pile and cut shop rents.

A CVA is a procedure that allows a company to

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