Store closures on the agenda as New Look posts dismal figures
STRUGGLING FASHION chain New Look has posted another set of dismal figures as the retailer continues to consider a raft of store closures.
New Look, owned by South African investment group Brait, posted a pre-tax loss of £123.5m in the three quarters to December, while sales slumped 6.3 per cent to £1bn.
The high street chain booked an underlying operating loss of £5.1m, which compares to a £111.5m profit in the same period last year.
Like-for-like sales in the UK plunged 10.7 per cent during the period, while online sales through New Look’s website fell 15 per cent.
Alistair McGeorge, who has been parachuted into the role of executive chairman for another stint at New Look, said the poor showing reflected a challenging market and heavy discounting.
It is also understood that the company is considering a range of options aimed at improving its performance, which includes store closures.
New Look, which has 594 stores in the UK, is thought to be mulling plans for a Company Voluntary Arrangement (CVA), which would put it on a firmer financial footing by allowing it to shut loss-making outlets and secure rental reductions.
Around 60 stores, or 10 per cent of the store estate, are thought to be at risk of closure.
Mr McGeorge said yesterday: “I am confident we are now making the necessary changes to get the company back on track and we continue to have sufficient liquidity to deliver our plans.”