Fashion retail chain New look has announced it will cut 980 jobs and close 60 stores around the UK as part of a plan to restructure the firm following talks with creditors over ongoing financial issues
According to a company spokesperson, a proposal presented to creditors and landlords related to the retailer has resulted in an "overwhelming majority" of 98 per cent favouring a plan to launch a company voluntary agreement (CVA), a type of insolvency designed to reduce business costs and prevent the firm falling into administration.
Announcing the decision, the company spokesperson revealed the firm's plans to reduce the number of New Look stores open in Britain, as well as its rental cost base, amid trading difficulties related to a struggling retail sector.
Sixty out of the chain's 593 stores have already been selected for closure, along with another six that are sublet to third parties. However, the company has confirmed that final decisions on the closure of individual stores will be made within the next six to 12 months.
Commenting on the move, New Look chief executive Alistair McGeorge stated that the CVA was a difficult but appropriate decision for the company, offering the retailer the opportunity to restore its profitability over time.
"The CVA is one of a number of necessary actions we are taking to get the company back on track," he said. "Additionally, we have further strengthened our alignment between e-commerce and stores."
"New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market."
Source: Business Sale Report