Embattled high street fashion retailer New Look is reported to be considering up to 60 store closures in an attempt to revive its fortunes.
According to Sky News the retailer is investigating a number options, including a Creditors Voluntary Arrangement, a process that would give it some breathing space while it worked through its current challenges. Landlords and other creditors would be given the opportunity to vote on a CVA should the retailer decide to go ahead with it.
The closure of 60 stores would represent about 10% of its total estate and Sky News reports that New Look is also likely to be seeking reduced rent from landlords on other properties. It was recently reported that department store group House of Fraser was also seeking to negotiate more favourable rents from landlords on some of its properties too.
New Look has had a tough time of late. In September its CEO of five years, Anders Kristansen stood down following difficult Q1 trading. It was subsequently revealed that it had posted an underlying loss of £10m in H1 and its former chairman Alistair McGeorge was brought back to the business to turn it around.
The business is majority owned by South African investor Brait. News of the potential store closures comes after it was revealed that a number of credit insurers had withdrawn of reduced their cover for new supplier contracts.