New Look to close some UK stores as creditors back…

Cornelia Mascio
Marzo 22, 2018

Troubled clothing retailer New Look is to push ahead with plans to close 60 stores across the United Kingdom, including two in Kent, with the loss of 980 jobs.

Sky News has previously reported how the struggling fashion retailer had sought a so-called Company Voluntary Arrangement (CVA) that would allow it to slash costs including high rent bills, given a "challenging" retail environment. The plan requires the company to make up to 980 staff redundant, out of its 15,300 United Kingdom employees, although it will attempt to redeploy people "where possible".

As part of the deal New Look has secured rent reductions on 393 outlets.

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

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 hard time", he said.

'The CVA is one of a number of necessary actions we are taking to get the company back on track.

Other companies finding it hard on the United Kingdom high street include Moss Bros, Mothercare and a number of restaurant chains.

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

Already this year Toys R Us UK and electronics retailer Maplin have collapsed into administration.

'Additionally, many have failed to define their customer base and develop an appropriate digital strategy to engage them'.

New Look's woes are another headache for South African businessman Christo Wiese, the biggest shareholder in Brait, after a share price crash in Steinhoff International SRRJ.J stripped him off his billionaire status.

Altre relazioniGrafFiotech

Discuti questo articolo

Segui i nostri GIORNALE