New Look confirms it will close stores and cut jobs
High street fashion retailer New Look has confirmed it will close 60 of its stores.
New Look which has stores in Ipswich, Felixstowe, Colchester, Sudbury, Clacton, Bury St Edmunds, Braintree, Lowestoft, Beccles and Thetford has said there will be 980 employees affected by the closures. However, it will try to redeploy staff elsewhere if possible.
Store closures are expected to start over the next six to 12 months.
The struggling chain’s shareholders voted through a company voluntary arrangement (CVA), which allows it to write down some of its debts through rent reductions.
Alistair McGeorge, executive chairman of New Look, 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.
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“Launching a CVA has been a tough decision and our priority remains keeping all potentially affected colleagues informed during this difficult time.
“The CVA is one of a number of necessary actions we are taking to get the company back on track.
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“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.
“New Look is a great brand and today represents another important step in helping to rebuild our position within the UK market.”