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New Look CVA and potential job losses revealed

New Look has announced a proposal to reduce its UK store estate and rent costs through a company voluntary arrangement, with potential job losses hitting nearly 1000. 

The retailer is seeking to close 60 out of its 593 stores in the UK, alongside a further six sites which are sub-let to third parties.

The proposal also includes a reduction in rental costs and revised lease terms across 393 stores.

Redundancies from potential store closures are expected to affect a maximum of 980 members of staff.

New Look currently employs 15,300 people in the UK.

It said “all efforts will be made to redeploy colleagues within the business where possible.”

New Look is seeking creditor approval on the proposal, which is due on 21 March.

All UK stores will remain open during the period of the proposal and the company’s online sales channel will be completely unaffected by the proposed changes.

Daniel Butters and Neville Kahn of Deloitte LLP, the business advisory firm, have been appointed as nominees to the CVA.

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.”

Butters 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. We have fully engaged with the British Property Federation and its members and their views are reflected in what we believe is a fair proposal to restructure the property obligations of the company.

“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.”

List of New Look stores identified for potential closure under the CVA proposal:

Aberdeen - Bon Accord

Beckton

Bolton Mens

Borehamwood

Brynmawr

Burton Mens

Cameron Toll

Cardiff - Queen Arcade

Cheshunt

Clevedon

Craigleith

Doncaster Mens

Dundee – Wellgate

Exeter Mens

Fleet

Gateshead - Team Valley

Glasgow - Buchanan Street Mens

Gorleston

Hanley Mens - Intu Potteries

Hounslow Mens

Hull – Whitefriargate

Keynsham

Kingswood

Leeds - The Core Shopping Centre

Leicester – Haymarket

London - Marble Arch

London - Moorgate/ London Wall

London - Oxford Circus

Maidenhead

Maidstone Mens

Merry Hill Mens

Metro Centre – Mens

Monmouth

Newport Mens

Newton Mearns

North Shields

Nottingham Mens

Ocean Terminal

Peterbrough Bridge Street

Pontypool

Portswood

Ramsgate

Reading - Broad Street

Reading Oracle Mens

Rhyl

Romford Mens

Rugby

Shrewsbury Mens

Sidmouth

Stockport – Merseyway

Stockton-on-Tees

Stratford Upon Avon -Bridge Street

Thornaby

Tonypandy

Torquay - Union Street

Tredegar

Troon

Wallsend

Weston Favell

Wigan Mens

 

 

Readers' comments (1)

  • Legalised fraud. Why should New Look be given another chance when they have absolutely and categorically failed as a business?

    Unsuitable or offensive? Report this comment

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