Three New Look shops set to close
NEW Look stores in Stockport, Wigan and Bolton look set to close as the chain prepares to shut 60 shops across the UK.
The retailer could axe up to 980 jobs and slash rent on nearly 400 shops as part of a rescue plan.
Bosses are looking to close around 10 per cent of their 593 shops, with a further six sites that are sub-let also due to shut.
The proposals come as New Look pushes ahead with a company voluntary arrangement (CVA).
It said store closures would lead to redundancies, with up to 980 jobs out of its 15,300 workforce under threat. It is hoped staff can be redeployed where possible.
The proposed rescue plan would also see the group ask landlords to slash the rent and revise leases on 393 stores across the UK.
Under the plans Bolton and Wigan mens stores - and the New Look shop within Stockport’s Merseyway centre - would close.
New Look executive chairman Alistair McGeorge said: “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 longterm profitability.”
All stores will remain open as normal until creditors vote on the CVA proposal on March 21.
The chain last month posted a pre-tax loss of £123.5m in the three quarters to December, while UK like-for-like sales plunged 10.7 per cent and online sales fell 15 per cent.
Daniel Butters, a partner at Deloitte who is handling the 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.”
He said they believed it was a ‘fair proposal’ for New Look’s landlords and stressed that ‘employees, suppliers and business rates will continue to be paid on time and in full.’
A CVA is designed to allow a company and its creditors to reach agreement and avoid administration.
New Look, owned by South African investment group Brait, is also struggling under £1.2bn of borrowings but is not seeking a debt restructuring.