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Tag: profitabilty

New Look to slash debt by £1bn to restore profitabilty

New Look to slash debt by £1bn to restore profitabilty

Business
Fashion retailer New Look plans to cut its debt by £1bn and raise more money to turnaround the business. The company, which is closing its remaining 120 stores in China as well as 60 stores in the UK to return to profitability, said it had agreed with key shareholders to slash its debt from £1.35bn to £350m.It will raise £150m in new money to finance its business and by cutting its debt its interest payments would be reduced to £40m from £80m a year.New Look avoided a collapse into administration after creditors and landlords agreed in March to back a plan to close 60 stores in the UK.Executive chairman Alistair McGeorge said: "Today's agreement represents a critical step in our turnaround plans and lays the foundations to secure the future an...