Fashion retailer New Look seeks huge closure of 60 UK stores
Fashion brand, New Look, has discussed the plan to close around 10 per cent of its UK stores.
This is another worrying case for the typical British high-street right now. The retailer is said to be drawing proposals for a Company Voluntary Arrangement (CVA) - it can be used by retailers struggling to better their financial issues.
The CVA plan is not yet complete, and a decision will be made in the following few weeks.
If the closures go ahead, it is said that around a tenth of New Look’s 600 outlets across Britain would be closed, alongside rent reductions sought at many remaining stores.
The retailer’s performance has been rocky in the past year, aa former boss Alistair McGeorge returned as executive chairman in November 2017.
Trading updates in this past week have revealed mixed futures for several different retailers. Debenhams and Mothercare have lost a lot, whereas Next performed well. Marks & Spencer announced that its like-for-like sales had decreased over Christmas.
Toys R Us also won approval to close around a quarter of its UK stores just before the holidays.
New Look has been owned by Brait since 2015, an investment vehicle headed by Christo Wiese, who has interests in Virgin Active.