Struggling New Look to cut 1,000 jobs

FASHION chain New Look yesterday announced plans to close 60 stores – putting nearly 1,000 jobs at risk.

It is seeking a rescue deal that would allow it to close around one in ten of its shops – threatening 980 jobs – while paying reduced rents on hundreds more.

Sales have fallen after the chain tried to rebrand and target a younger audience.

It is the latest sign of turmoil on the high street, with some 5,500 jobs hanging in the balance at Toys R Us and electronics retailer Maplin, which both went into administration last week.

Natalie Berg, an analyst at NBK Retail, said retailers were not moving fast enough to stand out from Silicon Valley giants such as Amazon and added: ‘More high street casualties are inevitable.’

New Look is seeking approval to trigger a process called a Company Voluntary Agreement so it can close 60 stores and six sites sub-let to third parties. It will also request rent reductions for 393 stores.

The retailer – which employs 15,300 across 593 stores in the UK – will trade as normal until March 21, when creditors will approve or reject the proposal.

Charlotte Pearce, an analyst at GlobalData, said the retailer would need to close more shops to survive.

Alistair McGeorge, executive chairman of New Look, said he hoped the plans would ‘restore long-term profitability’.