New Look plans to close 60 stores and axe as many as 980 jobs in a deal aimed at keeping the struggling clothing retailer afloat, the company said on Wednesday.
The firm blamed a “challenged trading performance and a difficult retail environment” for the move, which is part of a company voluntary agreement (CVA).
New Look bosses will also work with landlords to slash rent on more than 400 other stores. The brand has 593 shops across the UK.
Alistair McGeorge, Executive Chairman of New Look, said: “Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability.
“We have held constructive discussions with our key landlords and strategic partners and will now seek creditor approval on our CVA proposal. A priority for us is to keep all potentially affected colleagues informed during this difficult time.”
A CVA proposal is where a company enters into a legally binding agreement with its creditors, such as their suppliers or landlords, to delay payments and buy more time to fix the business.
Many of the stores under threat of being shut down are large centre of city and town outlets where rents are likely to be higher.
These include flagship stores at London’s Marble Arch and Oxford Circus.
The list of proposed closures, below, also includes many of the chain’s menswear standalone stores.
Meanwhile bosses of other chains have said that last week’s extreme weather was a veritable “disaster” for sales.
New Look stores earmarked for closure
- Aberdeen - Bon Accord;
- Bolton Mens;
- Burton Mens;
- Cameron Toll;
- Cardiff - Queen Arcade;
- Doncaster Mens;
- Dundee – Wellgate;
- Exeter Mens;
- Gateshead - Team Valley;
- Glasgow - Buchanan Street Mens;
- Gorleston; Hanley Mens - Intu Potteries;
- Hounslow Mens;
- Hull – Whitefriargate;
- Leeds - The Core Shopping Centre;
- Leicester – Haymarket;
- London - Marble Arch;
- London - Moorgate/ London Wall;
- London - Oxford Circus;
- Maidstone Mens;
- Merry Hill Mens;
- Metro Centre – Mens;
- Newport Mens;
- Newton Mearns;
- North Shields;
- Nottingham Mens;
- Ocean Terminal;
- Peterbrough Bridge Street;
- Reading - Broad Street;
- Reading Oracle Mens;
- Romford Mens;
- Shrewsbury Mens;
- Sidmouth; Stockport – Merseyway;
- Stratford Upon Avon -Bridge Street;
- Torquay - Union Street;
- Weston Favell;
- Wigan Mens