Tue, 21st May 2019
The high street clothing retailer New Look has announced plans to shut more stores. Originally, the company was planning to shut 60 of its stores, but on Tuesday it announced an additional 25 closures, with 13 more in consideration.
The round of store closures could put up to 1,600 jobs under threat. The company announced plans to close 60 stores back in March, with 980 jobs put at risk. It then proposed a Company Voluntary Agreement that it had hoped would allow it to pay down its debts and restructure the business. The new strategy for the company appears to be at least partially effective, as the latest company report showed that the company had made a profit of £22.2 million for the first half of the year - a recovery from a loss of £10.4 million that had been seen for the same period in 2017.
Sales have continued to fall, with the company reporting a fall in revenue of 4.2 percent, or £656.9 million. Negotiations with landlords have not been successful in terms of keeping struggling stores open, and Executive Chairman Alistair McGeorge today said that 85 stores will definitely close.
New Look is one of many struggling high street retailers. WH Smith and Debenhams are both planning on closing stores, and French Connection has announced that it may be up for sale. Landlords are trying to fight back against CVAs which they claim are being exploited by retailers in order to get cheap rents.