Fate of New Look revealed as chain to axe 1,000 jobs and close 60 stores
New Look Whitefriargate may be closing (Image: Peter Harbour)
By Hull Daily Mail | Posted: 8 Mar 2018
New Look has revealed it is planning to close its store in Whitefriargate following poor trading performance.
The retail giant is instigating a Company Voluntary Arrangement (CVA) and is seeking approval from its creditors on a plan to improve the operational performance of the company.
Under the proposal, New Look has identified 60 of its 593 stores in the UK for potential closure, including its Whitefriargate store in Hull city centre.
The closure could mean an empty space on Whitefriargate (Image: Katie Pugh)
The store will remain open as normal during the consultation period, which is due to end on March 21, and the company's online sales channel will be completely unaffected, Mirror Online reports.
Nationwide, there is expected to be 980 employees who are at risk at redundancy, although New Look has said efforts will be made to redeploy colleagues within the business where possible.
The High Street store said a "challenged trading performance and a difficult retail environment" is the reason behind the decision.
Allistair McGeorge, of New Look, said: "Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability.
"We have held constructive discussions with our key landlords and strategic partners and will now seek creditor approval on our CVA proposal.
"A priority for us is to keep all potentially affected colleagues informed during this difficult time."
New Look are to close 60 stores nationwide. The Grimsby branch in Victoria Street which is currently earmarked to remain open. (Image: Google)
At present, the Grimsby branch in Freshney Place shopping centre and the Scunthorpe branch in The Foundry are not on the list of stores identified for potential closure.
However, the retailer said it is also seeking a rent reduction across a further 400 stores, in addition to the 60 they plan to close, to try to keep those competitive. The chain has almost 600 stores in the UK.
New Look has been described as an "iconic brand" and has been at the forefront of high-street fashion since its opening in 1969.
'Offshore wind is spinning round a 40 year story of decline' - major investor's take on Grimsby's latest addition
East Yorkshire's new Siemens factory gets 1.5bn deal to build London Underground trains