New Look gets breathing space from banks

The fashion chain New Look has reached a refinancing deal with its banks that pushes out repayments on its £1.1bn of debt until 2015.

Concerns over the refinancing had been weighing on the private equity-owned New Look for months, and the agreement will be seen as a cautious vote of confidence from the banks.

However, the retailer, which has more than 1,100 stores in 16 countries, posted a 23 per cent fall in underlying profits to £147m in the year to the end of March, although its performance improved in the second half.

Underlying UK sales tumbled 5.7 per cent over the year and it said recent trading had been hit by the wet weather.