New Look to start negotiations with landlords

By

Barbara Santamaria

Published
Feb 26, 2018

Struggling fashion retailer New Look will start talks with landlords about possible store closures and rent reductions this week, according to reports.

According to the Sunday Times, the company wrote to property owners on Friday to inform them that its CFO Richard Collyer would visit them this week.

The fashion chain is understood to be seeking the closure of 10% of its store estate, totalling around 60 outlets. It has also been reported to be considering a company voluntary agreement (CVA), an insolvency procedure that allows a company to restructure its debts with creditors.

New Look has been hit badly by the tough retail market and the increasing competition from younger and trendy e-tailers. The company tried to capture the younger generation by launching new styles, but CEO Alistair McGeorge said recently its ranges have become “too edgy”. This led to a 10.6% fall in like-for-like sales in the 39 weeks to Christmas.

New Look is owned by South African magnate Christo Wiese through his investment fund Brait. Wiese also controls South African retail giant Steinhoff, which faced an accounting scandal in December, further spooking New Look’s shareholders.

New look’s value was written down to zero in November last year.