British style retailer New Look plans to shut 60 stores as part of a save deal to help it avoid entering administration.
About 980 staff face redundancy – from the 15, 300-strong UK workforce — and rents at about 400 shops will be slashed.
The rescue plan still requirements approval from creditors. New Look mentioned it faced “a difficult investing environment”.
Chairman Alistair McGeorge said the cuts had been “tough but necessary”.
The retailer – which has 593 stores in total – hopes in order to redeploy employees within the business exactly where possible.
The particular firm said it had been struggling with the rental costs and had asked homeowners for leeway so it could “restore profitably”.
They have also faced an “extremely challenging” retail market, driven by less strong consumer confidence, the implications associated with Brexit and competition from on the internet channels, ” said Deloitte, that is handling the firm’s Company Non-reflex Agreement – a type of compromise offer that allows a firm to avoid going into management.
“New Look is an iconic brand within the High Street and the Company Voluntary Contract will provide a stable platform upon which management’s turnaround plan can be delivered, inch said Daniel Butters, a partner from Deloitte.
“It is essential to stress that no shops will close on day one, plus employees, suppliers and business prices will continue to be paid on time and in complete. ”
High Street slowdown
The glut of UK retailers make closures or gone bust recently amid a slowdown on the High-street.
Last week toy shop chain Toys r Us dropped into administration, along with electronics store Maplin, leaving thousands of jobs in danger.
Restaurant chains Byron and Prezzo have also announced closures, while House of Fraser is certainly seeking to shore up its budget.
Analysis: Emma Simpson, business reporter
New Look has terribly lost its way. Sales possess fallen off a cliff. Also online sales were down simply by 15% in December.
In recent years it focussed on youthful shoppers, but failed to keep up with other brands Asos, Boohoo and Primark.
New Look is also saddled with way too many stores. It has almost 600 fashion outlets, an extraordinary quantity given the rise of buying online.
And then discover the debt. New Look is drowning within it. It currently stands at £ 1 . 2bn. In today’s challenging store environment that’s a pretty toxic combine. It needs to cut costs – plus fast.
New Look has its work cut out.
On top of less strong consumer confidence, experts say suppliers are battling a “perfect storm” of pressures including the rise associated with online shopping and rising overheads like the National Living Wage.
Many firms also over-expanded during the good years, leaving all of them dangerously indebted.
New Look will learn if creditors have got approved its rescue plan on twenty one March. The British Property Federation said it would be up to individual homeowners whether they accepted the proposal.
It comes on the day the federal government launched its first industry-led Store Sector Council to discuss the sector’s challenges.
It will eventually include major retailers such as Footwear and Amazon and meet frequently with government to discuss “the altering demands of consumers”, retail ressortchef (umgangssprachlich) Andrew Griffiths said.
Change could close the following stores:
- Aberdeen – Beleg Accord
- Bolton Mens
- Burton Mens
- Cameron Cost
- Cardiff – Queen Arcade
- Doncaster Mens
- Dundee – Wellgate
- Exeter Mens
- Gateshead – Team Valley
- Glasgow – Buchanan Street Mens
- Hanley Mens – Intu Potteries
- Hounslow Mens
- Hull – Whitefriargate
- Leeds – The particular Core Shopping Centre
- Leicester : Haymarket
- London – Marble Mid-foot
- London – Moorgate/ London Wall structure
- London – Oxford Circus
- Maidstone Mens
- Merry Hill Guys
- Metro Centre – Mens — Gateshead
- Newport Mens
- Newton Mearns
- North Shields
- Nottingham Guys
- Ocean Terminal – Edinburgh
- Peterbrough Bridge Street
- Reading – Broad Street
- Reading through Oracle Mens
- Romford Males
- Shrewsbury Mens
- Stockport – Merseyway
- Stratford On Avon -Bridge Street
- Torquay – Union Street
- Weston Favell
- Wigan Mens