New Look is plotting closure of 60 shops across the UK as high street pressure continues
The company is reportedly drawing up proposals to close 10 per cent of its stores
FASHION retailer New Look is looking at plans to close 60 branches across the UK, it’s reported.
The struggling chain is understood to be considering a deal to restructure its financial obligations to creditors so it can continue trading.
Sources told the South African-owned company, which has 600 stores nationwide, is writing up proposals for a Company Voluntary Arrangement (CVA).
The process is a legally binding agreement with the firm’s creditors to allow a proportion of debt to be paid back over a fixed period of time.
A decision about whether to proceed is expected to be taken in the coming weeks but is reportedly one of a number of options being discussed.
It would require the consent of bondholders, while landlords and other creditors would be asked to vote on the plan later this year.
If it goes ahead, will see roughly 10 per cent of New Look stores shut down with sizeable rent reductions sought at many of the remaining branches.
Earlier this week, it was reported that the firm had ditched plans to move to a posh new King’s Cross HQ in London – instead allowing Google to take its spot.
The high street company was due to relocate staff this Spring to the 123,000 square foot building, which is currently being regenerated, with the lease first announced in 2016, according to the .
New Look isn’t the only retailer seemingly under threat of slashing its high street store portfolio.
Last month, Toys R Us confirmed plans to shut “at least” 26 of its 106 stores in the UK, putting hundreds of jobs at risk.
But the toy giant managed to stave-off the threat of administration after reaching a deal with the UK’s pension lifeboat.
New Look has declined to comment.
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