But both Moody’s and a local analyst warned that the group still needed to demonstrate that it could grow turnover in the current tough UK retail environment, which has been hurt by economic factors, Brexit and more competition from online sales.
“New Look’s management team will now have the flexibility it needs to deliver on its business plan, with the recent restructuring likely to significantly shrink leverage,” Roberto Pozzi, a Moody’s senior vice-president and lead analyst for New Look, said.
New Look has leading positions in the UK womenswear market, with good brand recognition on the UK high street, and will benefit from lower rents following a Company Voluntary Arrangement in March 2018 and other efficiency measures that have lowered the cost base, Pozzi said.
New Look re-launched its brand in April 2018. Its turnaround plan includes focusing on a return to proven broad appeal product, a realigned supply chain, lower prices delivering better value and efficiency and cost savings, according to the Brait website.