New Look set to close 100 stores putting more than 1,000 jobs at risk
The clothing chain had planned to only shut 60 stores but today it has increased the number to 85, with talks of shutting a further 13 as well
NEW Look has announced it will close nearly 100 stores as it struggles to stay on the high street, potentially putting more than 1,600 jobs at risk.
The clothing chain had planned to only shut 60 stores but today it increased the number to 85.
There are also talks of shutting a further 6 or 7 shops as well, and 26 stores are currently trading "rent-free", which means they could close at any time by landlords or New Look.
The planned store closures could put as many as 1,600 jobs axed.
The company first announced 60 shop closures in March which would see 980 jobs lost.
The firm proposed something called a Company Voluntary Agreement (CVA), which will allow it to restructure the business and pay down its debts.
The new strategy seems to be working as the company today reported a profit of £22.2 million for the first half of this year, compared to a loss of £10.4million for the same period last year.
But sales have continued to fall by 3.7 per cent, with revenue slumping by 4.2 per cent to £656.9million.
Executive chairman Alistair McGeorge said today that 85 stores will definitely close after negotiations with landlords.
It's not yet clear where the additional 15 stores will be closing but The Sun has asked New Look for a list and we will update this story when we hear back.
Recent analysis by the Labour party showed there are 100,000 fewer Brits working in the retail industry than there were in 2015.
Last year alone, the high street lost a total of 1,800 shops.
Companies blame the rise of Amazon and other online shopping sites for driving footfall away from town centres.
Why is the high street struggling?
HERE we reveal why there is more pressure than ever on high street shops
Recent analysis by the Labour party showed there are 100,000 fewer Brits working in the retail industry than there were in 2015.
Last year alone, the high street lost a total of 1,800 shops.
Companies blame the rise of Amazon and other online shopping sites for driving footfall away from town centres.
Labour also points to price-gouging by town centre car parking firms, and to look into shops being left empty by landlords.
Meanwhile the Liberal Democrats want to abolish business rates and replace them with a tax on the value of land.
Influential Tories are calling on Chancellor Philip Hammond to fast-track a 3 per cent tax on the likes of Amazon, eBay and Google to “level the playing field” with UK business and help the high street.
Labour also points to price-gouging by town centre car parking firms, and to look into shops being left empty by landlords.
Meanwhile the Liberal Democrats want to abolish business rates and replace them with a tax on the value of land.
Influential Tories are calling on Chancellor Philip Hammond to fast-track a 3 per cent tax on the likes of Amazon, eBay and Google to “level the playing field” with UK business and help the high street.
New Look has said it will also close all 148 of its stores in China.
The business has made £70million of savings this year, but it hopes to save another £8million.
Mr McGeorge warned that conditions on the high street are still challenging.
He said: "We continue to work hard to accelerate our progress, but we are facing into significant headwinds and uncertainties, including Brexit.
"Clearly the wider retail environment remains challenging and we are not expecting that to change anytime soon.
"However, we are on the right track and continue to drive further efficiencies across the business."
More on Money
New Look currently has 593 stores and more than 18,000 employees.
The retailer is the latest casualty of the struggling high street as retail businesses try to boost flagging sales.
Last month it was revealed that WH Smith will start closing stores.
Meanwhile French Connection has also announced that it could be up for sale.
Debenhams is trying to beat the pressures on high street stores by opening a new flagship shop containing a gin bar - after announcing plans to close 10 shops.
We pay for your stories! Do you have a story for The Sun Online Money team? Email us at [email protected] or call 0207 78 24516. Don't forget to join the for the latest bargains and money-saving advice.