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New Look deal save 11,000 jobs

New Look has won approval for its store rents to be linked to turnover as part of a deal to secure the struggling fashion chain's future.
The company said its creditors had backed a company voluntary arrangement (CVA), safeguarding 11,000 jobs.
The agreement means that its landlords will have to accept a percentage of a shop's revenue for their rent instead of relying on a fixed lease.
New Look said the new model "reflects the wider retail market".
Landlords have been willing to renegotiate turnover-linked rents during the coronavirus pandemic, as vast areas of the economy were forced to shutdown.
However, New Look's decision to link its proposal to a CVA has drawn criticism from the British Property Federation.
"CVAs were designed to be short-term, as part of a wider rescue package, to support businesses in genuine distress," said the federation's chief executive, Melanie Leech.
"We support this rescue culture, but today's result clearly demonstrates how the process is now wrongfully being used as a weapon by businesses to rip up leases permanently."
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