New Look to close 60 stores and cut 1000 jobs

  • by Xavier Trudeau
  • in Financer
  • — Mar 22, 2018
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Troubled retailer New Look has secured approval from 98pc of its creditors for a deal to stem losses by closing 60 stores through a company voluntary arrangement that puts 980 jobs at risk.

As a result, up to 980 of its 15,300 United Kingdom staff will be made redundant, though the company says it will try to redeploy them elsewhere in the business.

Following the announcement, New Look chairman Alistair McGeorge said: "In order to help restore long-term profitability, it is clear we need to reduce our fixed cost base".

'We are therefore pleased to have gained the support of our creditors to address our over-rented store estate. Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this hard time.

'The CVA is one of a number of necessary actions we are taking to get the company back on track.

New Look identified 60 out of its 593 stores in the United Kingdom to be closed, along with a further six sites that are sub-let to third parties.


Other companies finding it hard on the United Kingdom high street include Moss Bros, Mothercare and a number of restaurant chains.

Eric Benedict, UK market head at restructuring firm AlixPartners, added: 'The situation with New Look is the latest indication of significant changes sweeping down the high street.

Already this year Toys R Us UK and electronics retailer Maplin have collapsed into administration.

'The problem is that retail has been driven by a toxic cocktail of Brexit-related currency correction, rent rises, business rates and the introduction of the living wage.

New Look's woes are another headache for South African businessman Christo Wiese, the biggest shareholder in Brait, after a share price crash in Steinhoff International SRRJ.J stripped him off his billionaire status.

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