New Look to close 60 stores as part of CVA plan
New Look has announced plans to close 60 stores and make up to 980 staff redundant as part a Company Voluntary Arrangement.
The fashion retailer said the proposed CVA has been approved by an overwhelming majority of its creditors and landlords, with 98% of votes in favour of the proposal.
New Look is looking to turnaround the business by reducing its UK store estate and rental cost base as it struggles against difficult trading conditions.
Under the terms of the CVA, the retailer has identified 60 of its 593 stores for potential closure as well as an additional six sites which are sub-let to third parties.
The CVA also includes a requirement to make a maximum of 980 staff redundant from the closed shops although New Look said it will make every effort to redeploy affected staff in other parts of the business.
Alistair McGeorge, executive chairman of New Look, said: “The CVA is one of a number of necessary actions we are taking to get the company back on track. In addition to implementing other cost-saving initiatives, we are already focusing on driving future full price sales by realigning our pricing to offer significantly better value, adding flexibility to our buying model, and improving our speed to market. Additionally, we have further strengthened our alignment between ecommerce and stores.”
Final decisions on individual store closures will be made by the company and the stores’ respective landlords with the shops likely to close within six to 12 months.
In addition, the proposal includes revised lease terms and rent reductions ranging between 15% to 55% across 393 stores.
Mc George added: “New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market.”
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