Some good news at last for Northampton town centre as New Look is saved by rescue deal

Northampton's New Look store looks to have been saved by an 11th-hour rescue deal.

The fashion chain faced collapse and the closure its 490 shops nationwide — including the prime Grosvenor Centre site in Northampton town centre — unless creditors approved a package allowing it to cut rents.

Today's news will be a relief to Northampton shoppers already reeling from Monday's double bombshell.

This newspaper revealed that Sainsbury's is quitting its Grosvenor Centre home early in 2021 after more than years.

And rival supermarket Tesco is moving to smaller premises in Abington Street in February, leaving another major town centre unit empty opposite the former Marks & Spencer store in an area where Bright House, Thorntons and Caffe Nero have all recently closed.

New Look's rescue deal reportedly got the thumbs up at Tuesday's dramatic meeting of creditors — mostly landlords — allowing it to switch the majority of its stores to rents tied to turnover with a three-year rent holiday for the remainder.

The agreement voted for by more than 75 per cent of the company's creditors has major repercussions for landlords in the retail sector as it paves the way for other struggling stores to follow suit.

But New Look bosses last month warned landlords to vote for the plan or let the company fail, which would have meant 490 empty high street shops and the loss of 11,200 jobs.

The chain was forced to close stores for nearly three months during the Covid-19 lockdown.

Chief executive Nigel Oddy told Retail Gazette said: “I would like to take this opportunity to thank our landlords and creditors for their support for our CVA which will provide us with enhanced financial strength and a sustainable platform for future trading and investment.

“We still fundamentally believe the physical store has a significant part to play in the overall retail market.

“We look forward to working closely with our landlords and all creditors to ensure we can navigate the uncertain times ahead together.

“The impact of Covid-19 has reinforced this relentless focus on our customer-orientated strategy.”

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