By Kate Brown
British retailers are facing an extremely challenging market in recent times given the slowdown on the high street. Last week we saw the likes of Toys R Us and Maplin announce their collapse into administration as well as restaurant chains Byron and Prezzo announce closures.
The latest fashion retailer to join the high street crisis is New Look who announced news that 980 staff members will face redundancy. As part of a rescue plan, New Look plans to close 60 stores in order to avoid going into administration (see list below). Chairman Alistair McGeorge states the cuts are “tough but necessary”. In a strong online shopping environment, New Look is saddled with nearly 600 fashion outlets on the high street. Additionally, their online shopping portal failed to keep up with the likes of Asos and Boohoo with online sales falling by 15% in December.
Handling the firm’s Company Voluntary Agreement, Deloitte, said New Look was facing the risk of collapsing into administration due to weaker consumer confidence, competition from online channels, and the implications of Brexit. Whilst business correspondent Emma Simpson reported New Look’s debt amounting to a whopping £1.2bn contributing significantly to the problems in place.
New look said it was struggling with rental costs and has asked landlords for leeway so that it could “restore profitably”. On 21 March 2018, New Look will learn if the rescue plan has been approved by creditors. According to the British Property Federation, the decision will lie with individual landlords who will ultimately determine whether to accept the proposal.
The store which are looking to be closed are:
- Aberdeen – Bon Accord
- Beckton
- Bolton Mens
- Borehamwood
- Brynmawr
- Burton Mens
- Cameron Toll
- Cardiff – Queen Arcade
- Cheshunt
- Clevedon
- Craigleith
- Doncaster Mens
- Dundee – Wellgate
- Exetrer 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 – Gateshead
- Monmouth
- Newport Mens
- Newton Mearns
- North Shields
- Nottingham Mens
- Ocean Terminal – Edinburgh
- 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
Related Articles:
Maplin, Toys R Us and Sheffield firm DavyMarkham collapse into administration
Changes to statutory redundancy pay
