Business World

Sunday 23 September 2018

New Look to shut 60 stores as part of restructuring plan with creditors

New Look has announced plans to close 60 stores (PA)
New Look has announced plans to close 60 stores (PA)
Independent.ie Business Desk

New Look has agreed a restructuring plan with creditors that will see it shut 60 stores, resulting in the loss of up to 980 jobs.

Independent.ie has confirmed that none of the potential store closures are in Ireland.

In a statement issued this afternoon, the Executive Chairman of New Look Alistair McGeorge said; "In order to help restore long-term profitability, it is clear we need to reduce our fixed cost base.

"We are therefore pleased to have gained the support of our creditors to address our over-rented store estate. Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this difficult time.

"The CVA is one of a number of necessary actions we are taking to get the company back on track. In addition to implementing other cost-saving initiatives, we are already focusing on driving future full price sales by realigning our pricing to offer significantly better value, adding flexibility to our buying model, and improving our speed to market. Additionally, we have further strengthened our alignment between ecommerce and stores.

"New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market."

They added that New Look identified 60 out of its total 593 stores in the UK for potential closure, alongside a further 6 sites which are sub-let to third parties.

Final decisions on individual store closures will be made by the company and the stores’ respective landlords.

Under the terms, the stores identified for potential closure are most likely to close within 6 to 12 months’ time subject to decisions by individual landlords, but no stores will close on day one.

Press Association

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