One of New Look’s leading shareholders, South African investment firm Brait, has announced a new strategy to realise its investments over the next five years putting it “on a firm financial footing for the future”.
Brait previously acted as a “long-term investment holding company”.
The company has now revealed a financial restructuring which involves an equity capital raise, in a bid to address its debt problems and return cash to shareholders.
Brait plans to reduce its net debt by up to R5.3bn (£280m).
As part of the restructuring will also include a refinancing of its revolving credit facility and the launch of a new convertible bond to raise, in aggregate, between R14.4bn (£760m) and R14.7bn (£776m).
Chairman Jabu Moleketi, said: “The deal represents a positive step forward and a holistic solution for Brait following extensive discussions to materially reduce the debt on its balance sheet.”
New Look was bought by Brait for £780m in 2015.