Debt sparks closure of New Look retail stores

Troubled fashion retailer New Look could be set to close Scottish stores as it plans to cut around 10 per cent of its branches.

The company, which was founded in England but is now owned by a South African investment company, is struggling to contain the weight of its debt.

New Look is understood to be planning to commit to a Company Voluntary Arrangement.

The retailer has 600 stores in the UK, with about 50 of those in Scotland. There are six outlets in and around Edinburgh.

Ten per cent of closures would mean around 60 stores would shut, with plans to try and renegotiate rental agreements also planned.

The firm is struggling to deal with the rise in online shopping and recently announced it would not go ahead with a planned move to a new HQ at Kings Cross in London.