LONDON, United Kingdom — British fashion group New Look said on Monday it had agreed a restructuring with debtholders to deleverage and strengthen its balance sheet.

New Look, which is owned by South African investment firm Brait, said it had agreed a debt-for-equity swap proposal to reduce its long-term debt from 1.35 billion pounds ($1.73 billion) to 350 million pounds together with a new capital raise of 150 million pounds funded by the issuance of new bonds.

The retailer said the agreement would provide it with a delevered capital structure, significant liquidity and adequate financial flexibility to support its future development.

By James Davey; editor: Paul Sandle.