New Look confirms 85 store closures after revenues fall 4.2%
today Nov 7, 2018
New Look has increased the number of UK stores it is planning to close as part of a turnaround plan from 60 to 85, with a further 13 also at risk of closure.
The clothing company announced in March the closure of 60 locations under a company voluntary agreement after the insolvency plan was approved by creditors.
But a continued decline in revenues has forced it to announce more closures amid “significant headwinds and uncertainties” in the UK retail market. This week, the business announced a 4.2% fall in half-year revenue, while like for-like sales for its New Look Brand fell by 3.7%.
New Look has embarked on a cost savings plan to improve its financial stability, and new womenswear ranges helped it lift clothing sales in the six months to 22 September, however challenges remain in the brand’s footwear and accessories categories.
In addition to the 85 UK stores earmarked for closure, New Look is still negotiating with landlords about the future of 13 further stores, and the fate of an additional 26 shops trading rent-free is unclear.
Despite falling sales, the company’s underlying operating profit improved to £22 million from a loss of £10.4 million in the first half of the year.
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