New Look puts 980 jobs at risk through store closures

One of Britain’s biggest fashion retailers, New Look, is planning to close 60 stores as part of a rescue mission to help it avoid going into administration.

It is expected that around 980 staff will face being made redundant, and rents at about 400 stores will be rid.

The rescue plan still needs to be approved by creditors, and New Look said it is facing “a difficult trading environment.”

The retailer has 593 stores in total, and hopes to redeploy employees within the business where possible.

The firm said it had been struggling with its rental costs and had asked landlords for leeway so it could “restore profitably” for quite some time.

Daniel Butters of Deloitte, which is handling the group’s company voluntary agreement, said: “New Look is an iconic brand on the high-street and the company voluntary agreement will provide a stable platform upon which management’s turnaround plan can be delivered.

“It is important to stress that no stores will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full.”

New Look has also faced a “challenging” retail market. This has been driven by the likes of Brexit, competition from fellow stores and weaker consumer confidence.

This news follows on from Toys R Us having fallen into administration last week, as well as Maplin, leaving countless jobs hanging.

Restaurant chains, Byron and Prezzo, have also announced some closures. House of Fraser is seeking to shore up its finances, too.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →