High Street Retailer Negotiates with Landlords for Survival
- New Look enters talks with landlords seeking turnover-based rent
- Appoints property agents CBRE and CWM for negotiations
- Considering alternatives if talks fail
- Safely reopening stores amidst coronavirus outbreak
High street retailer New Look has reportedly entered talks with its landlords about switching to a turnover-based rent system. The company, which had earlier this year requested a three-month rent holiday from landlords amidst the coronavirus outbreak, is now seeking more sustainable rental arrangements as it looks to safely reopen stores. New Look has appointed property agents CBRE and CWM to negotiate terms for its 500 store portfolio across the UK. If the talks fail to end in favourable terms, the retailer will likely consider alternative restructuring options. A spokesperson told Sky News: ‘As we look towards beginning to safely reopen stores, we can confirm we are in discussions with landlords regarding rental arrangements which fairly reflect the retail operating environment.’ The company had also revealed a series of measures focused on preserving cash, maximizing liquidity, managing working capital, including significantly reducing its marketing costs, requesting a three-month rent holiday from landlords, pausing all production to be reviewed as the situation evolves, and halting all recruitment. It was ‘actively pursuing’ government and Bank of England support measures such as a business rates exemption for 12 months, employee cost support, deferral of tax and national insurance payments, and gaining access to the Covid Corporate Financing Facility.
Factuality Level: 8
Factuality Justification: The article provides accurate information about New Look’s negotiations with its landlords regarding rental arrangements and mentions the measures taken by the company during the coronavirus outbreak. It also includes a statement from a New Look spokesperson. However, it could be more concise and focused on the main topic without unnecessary details.
Noise Level: 3
Noise Justification: The article provides relevant information about New Look’s negotiations with its landlords regarding rental arrangements in response to the coronavirus outbreak. It also mentions measures taken by the company to preserve cash and maximize liquidity. However, it lacks a detailed analysis of long-term trends or possibilities, accountability, scientific rigor, intellectual honesty, staying on topic, evidence, data, examples, actionable insights, and solutions.
Financial Relevance: Yes
Financial Markets Impacted: Retail sector, real estate market
Financial Rating Justification: The article discusses New Look’s negotiations with landlords regarding rental arrangements and its efforts to reduce costs during the coronavirus outbreak, which impacts financial markets through the retail sector and real estate market.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: No
Extreme Rating Justification: There is no extreme event mentioned in the article.
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