Retail woes grow as New Look eyes store closures

New Look is working on proposals to enter a company voluntary arrangement

New Look is working on proposals to enter a company voluntary arrangementNEW LOOK PA

New Look is reportedly drawing up plans for a Company Voluntary Agreement (CVA) after its insurers cancelled cover to its suppliers.

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

A decision about whether to proceed is expected to be t‎aken in the coming weeks, and would require the consent of bondholders.

Landlords and other creditors would be asked to vote on the plan later this year.

If it goes ahead, will see roughly 10 per cent of New Look stores shut down with sizeable rent reductions sought at numerous remaining branches.

New Look ‎is the latest in a series of big names to examine a radical shrinking of their store portfolios amid rising pressures from online and discount rivals, increased labour costs and a deteriorating outlook for consumer confidence.

The fashion chain, owned by South Africa's Brait, is in the middle of a turnaround plan after bringing back its old management to revive the business following a steep fall in sales and mounting losses.

Before Christmas, Toys r Us chose to close around a quarter of its stores because of trading difficulties.

New Look's performance has stuttered during the previous year, wit‎h former boss Alistair McGeorge returning as its executive chairman in November.

New Look declined to comment on the potential store closures on Thursday night (January 11th).

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