1,000 jobs at risk as retailer plans to shut 60 stores

Nearly 1,000 jobs are at risk at clothes retailer New Look after it revealed plans to shut 60 stores as part of a rescue deal.

The South African-owned retailer wants to enter into a company voluntary arrangement (CVA), which will keep the business trading but allow it to negotiate out of existing contracts.

The move requires approval from landlords and other creditors, but discussions have been taking place since at least Christmas.

There are six West Midlands stores under threat – Burton Mens, Hanley Mens at Intu Potteries, Merry Hill Mens, Rugby, Shrewsbury Mens, and Stratford Upon Avon Bridge Street.

New Look has around 850 stores and is looking for rent to be cut in 393 of those. It has suffered from the challenging retail environment and becomes the latest high street casualty, after Toys R Us and Maplin appointed administrators last week.

New Look is being led by Alistair McGeorge who became executive chairman in November, a job he had previously held for two years from 2011.

McGeorge 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.”

Daniel Butters and Neville Kahn of Deloitte have been appointed to oversee the CVA.

Butter added: “The retail trading environment in the UK remains extremely challenging, driven by weaker consumer confidence, the implications of Brexit and competition from online channels.

“New Look is an iconic brand on the high street and the CVA will provide a stable platform upon which Management’s turnaround plan can be delivered.

“It is important to stress that no stores will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full.”