New Look may close 100 stores nationwide
Update 6/11: New Look may close up to 100 UK stores in a bid to improve profitability, the BBC reports.
The high street chain said 85 stores had closed or were closing, while talks with landlords on a further 13 were ongoing. Another 26 stores are trading rent-free, although New Look and the landlord have the right to end this at anytime.
The news comes after creditors approved a plan to shut 60 New Look stores in March.
On Tuesday, the chain's Executive Chairman, Alistair McGeorge, said the retailer was facing "significant headwinds and uncertainties, including Brexit". He added that the brand was "on the right track" and will "continue to drive further efficiencies across the business".
Update 22/3: New Look has confirmed it will close 60 UK stores and cut up to 1,000 jobs after a restructuring plan was approved by creditors, the BBC reports.
The fashion retailer, which employs 15,300 UK staff, said it would attempt to reassign many of those employees who are at risk of redundancy. The stores are expected to close over the next year.
The decision comes after New Look sought a Company Voluntary Arrangement (CVA) earlier this month in an attempt to reduce costs.
New Look's executive chairman, Alistair McGeorge, said the closures are needed "to help restore long-term profitability".
He added: "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."
Original story 7/3: Your local high street might be missing another well-known retailer later this month. New Look has announced it could close 60 of its stores, citing a "challenged trading performance and a difficult retail environment". And we're devastated.
The firm is proposing to into a Company Voluntary Agreement (CVA) as part of a plan to improve performance, it confirmed in a press release on Wednesday.
Under this plan, New Look has identified 60 out of its total 593 stores in the UK for potential closure, alongside a further six sites which are sub-let to third parties. The proposal includes a reduction in rental costs and revised lease terms across 393 stores. It also means up to 980 jobs could be at risk.
"Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability," Alistair McGeorge, Executive Chairman of New Look, said in a statement.
"We have held constructive discussions with our key landlords and strategic partners and will now seek creditor approval on our CVA proposal. A priority for us is to keep all potentially affected colleagues informed during this difficult time."
New Look has asked its creditors to approve the proposal by March 21 and has confirmed that all stores will stay open until then.
The fashion chain is the latest retailer to feel the pressure of falling profits in recent weeks. Both Toys R Us and Maplin went into administration in February.
See the full list of New Look stores identified for potential closure below:
Aberdeen - Bon Accord
Beckton
Bolton Mens
Borehamwood
Brynmawr
Burton Mens
Cameron Toll
Cardiff - Queen Arcade
Cheshunt
Clevedon
Craigleith
Doncaster Mens
Dundee – Wellgate
Exeter Mens
Fleet
Gateshead - Team Valley
Glasgow - Buchanan Street Mens
Gorleston
Hanley Mens - Intu Potteries
Hounslow Mens
Hull – Whitefriargate
Keynsham
Kingswood
Leeds - The Core Shopping Centre
Leicester – Haymarket
London - Marble Arch, Moorgate/ London Wall, Oxford Circus
Maidenhead
Maidstone Mens
Merry Hill Mens
Metro Centre – Mens
Monmouth
Newport Mens
Newton Mearns
North Shields
Nottingham Mens
Ocean Terminal
Peterborough Bridge Street
Pontypool
Portswood
Ramsgate
Reading - Broad Street
Reading Oracle Mens
Rhyl
Romford Mens
Rugby
Shrewsbury Mens
Sidmouth
Stockport – Merseyway
Stockton-on-Tees
Stratford Upon Avon -Bridge Street
Thornaby
Tonypandy
Torquay - Union Street
Tredegar
Troon
Wallsend
Weston Favell
Wigan Mens
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