New Look to Shut 60 Stores And Cut 980 Jobs
- Fashion retailer has struggled to pull profits
- Closing stores as part of a rescue plan
- 10% of shops across the UK will close
High street retailer New Look will be closing 60 stores across the UK, which will result in an estimated 980 job losses.
A further six stores that are sublet are also due to shut, as the company is pushing forward with a company voluntary arrangement to avoid going into administration.
New Look has been struggling to pull profits in recent months, especially suffering with poor sales over the Christmas period.
The CVA is a legally binding process that will allow New Look’s debt to be broken up and paid off over a longer period of time.
It said that the closures would lead to redundancies, with up to 980 jobs now under threat, although it also said that it will try and redeploy staff where possible.
Its rescue plan will also see the group ask landlords to cut the rent on stores, and revise leases on 393 stores across the UK.
Alistair McGeorge, executive chairman of New Look, said, “Given our challenged trading performance and over-rented UK store estate, we are having to take tough by necessary action to reduce our fixed cost base and restore long-term profitability.”
New Look confirmed that all stores will remain open as normal until creditors vote on the CVA proposal on the 21st March.
This comes after Toys R Us and Maplin both closed last week after failing to find a buyer to pay off debts.
The stores are now having huge closing down sales, so if there’s one near you then you could find a great bargain.
Retailers have been hit hard over the past two years by surging wage costs, eye-watering business rate hikes, and inflation cause by the weak pound, which has coincided with falling consumer confidence.
Daniel Butters, a partner at Deloitte who is handling New Look CVA, said, “The retail trading environment in the UK remains extremely challenging, driven by weaker consumer confidence, the implications of Brexit, and competition from online channels.
“New Look is an iconic brand on the high street and the CVA will provide a stable platform upon which management’s turnaround plan can be delivered.”