Struggling retailer New Look is thought to be mulling up to 60 shop closures as it battles tumbling revenue and a ”challenging” UK sales performance.
The chain is drawing up proposals for a company voluntary arrangement as one of several options being discussed, as first reported by Sky News.
If New Look does go ahead with the store closures, roughly one-tenth of its 596 UK stores could face the chop.
It is understood that Deloitte has been drafted in to advise the retailer on its options.
Earlier this month, some credit insurers for New Look suppliers cut their cover amid concerns over its poor performance. Credit insurer Euler Hermes stopped offering cover on new shipments of goods to New Look, although it is still providing residual cover on existing orders.
Another insurer, QBE, said it has reduced its level of cover for New Look “in places”.
In the retailer’s most recent financial results for the 26 weeks to 23 September 2017, total revenue was down 4.5% to £686m and adjusted EBITDA plummeted 72.2% year on year to £24.2m. It reported an underlying operating loss of £10.4m, compared with a £59.3m profit in the same period the year before.
New Look and Deloitte declined to comment.