As part of a rescue deal to help avoid going into administration, the British fashion retailer founded by Tom Singh OBE in 1969, New Look plans to close 60 stores nationwide. From a 15,300-strong UK workforce, about 980 staff members face losing their jobs, while the rents at around 400 New Look stores, out of its 593 stores, will be reduced significantly.
The retail company also hopes to reposition employees within the
New Look's chairman, Alistair McGeorge states that the cutes were “tough but necessary”, and also acknowledged that the main problem was the retailer's “over-rented UK store estate”.
A form of compromise deal that will allow the firm to avoid going into administration (Company Voluntary Agreement) is being handled by Deloittle. A Partner at Deloittle, Daniel Butters said, “[This has been] 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 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.”
The rescue plan still needs to be approved by creditors.
The UK has seen a series of closures of retailers on the High Street. Most recently, Toys r Us fell into administration, as well as Maplins, putting thousands of people at risk of losing their jobs. Restaurant chains Prezzo and Byron also announced closure.