New Look on Torquay could be set for closure it has been announced today, Wednesday 7th March.
New Look has announced a proposal to reduce its UK store estate and rental costs amid challenged trading performance and a difficult retail environment.
New Look could close 60 of its 593 stores as part of a Company Voluntary Arrangement (CVA) Torquay’s Union Street store, which is one of Torquay’s biggest shops, has been listed for potential closure.
New Look have said a maximum of 980 staff could face redundancy but 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 21st March 2018. All UK stores will remain open as normal 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.”
Daniel Butters, Partner at Deloitte, said: “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.”
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