New Look - now

All,CExpectations on New Look:

- The company informed suppliers it will cancel all SS orders and will delaying payment for any supplies in transit or already accepted until further notice. 

- The Corona Crisis is exceptional for everybody, in particular retailers. But other retailers (like H&M) have agreed to pay for cancelled orders). Thus New Look proves to be a worse client than others and suppliers - already voicing their outrage at this sub-standard response will be asking for pre-payment in the future (and will have to ask as they will need to advance capital themselves to ramp up productions), which presumably means the company has to restructure again - pretty much now - if it wants to order / receive any AW stock.

- Note the company had fully drawn its revolver and liquidity (including undrawn trade credit lines) stood at £115m on Feb.8th. 

Wolfgang