New Look Retailers Limited

New Look Retailers Limited, a global fashion retailer with a chain of high street shops, entered into a Company Voluntary Arrangement on 15 September 2020. Daniel Butters and Robert Fishman of Teneo were appointed Joint Supervisors.

This was the second time in three years that the company decided to make use of a CVA to reset its rents and to write off rent arrears, having previously entered into a CVA in March 2018.

A group of the Company’s landlords challenged the CVA prior to the expiry of the challenge period (15 October 2020). They argued that they were unfairly prejudiced because the approval of the proposal was obtained with votes of other creditors that were treated more favourably.

In a judgment handed down on 10 May 2021, Mr Justice Zacaroli in the High Court of Justice ruled in favour of the Company, finding that the fact that landlords could be outvoted by other creditors did not mean that their interests were being unfairly prejudiced.

The landlord group was granted permission to appeal. On 1 March 2022, the Court dismissed the appeal, following which the CVA challenge was discharged to the satisfaction of the Company and the Joint Supervisors.

The Joint Supervisors then received £600k in respect of a fund created to acknowledge the early termination of the 2018 CVA by carrying over amounts that would have been paid in that CVA. Funds totalling £513k were also received under the Compromised CVA Creditor Fund (“CCF“).

On 26 September 2022, the Joint Supervisors made a distribution of the CCF totaling 2p in the £ to certain claimants. This is the first dividend under the CCF. The claims bar date for creditor claims is 15 December 2023.

The Joint Supervisors’ latest Progress Report can be found HERE.