Mountain Warehouse is in negotiations to take over up to five New Look stores, Drapers can reveal.
The outdoor brand is understood to be in discussions with landlords to acquire between four and five New Look stores that had been due to stay open under the terms of the Company Voluntary Arrangement (CVA) but with reduced rents.
Landlords across the UK have been in negotiations with rival tenants to take over from New Look to mitigate the impact of rent cuts announced in the retailer’s CVA in March.
Iceland is due to move into a New Look store in Launceston, Cornwall, following a deal to take the retailer’s Stratford store, which was announced last month. Iceland is understood to be looking at further sites.
JD Sports has also signed up to take on New Look’s Portsmouth store, as previously reported by Drapers.
Drapers understands other retailers including Sports Direct and Lidl are weighing up bids for other New Look stores.
New Look announced plans to close 60 stores under the terms of the CVA, with a further 393 stores subject to rent reductions.
Under the terms of the agreement landlords of B1 stores were subject to a 20% rent cut, B2 stores of 40%, and B3 stores of 60%.
However, landlords can exercise their right to break leases with 60 days notice under the terms of the CVA.
Iceland, Mountain Warehouse, New Look and JD Sports declined to comment.