Popular UK-based fashion retailer New Look is set to close three of its stores over the coming weeks.
According to Worcester News, the Riverside Shopping Centre branch in Evesham closed its doors on 30 July, with the Kings Chase Shopping Centre store in Bristol set to follow it on 9 August.
The Crossgates Shopping Centre branch in Leeds will close at the end of August, although the exact date has not yet been confirmed.
Continuing restructuring efforts
A spokesperson from New Look explained that the closures are part of the company’s normal business operations, which include store closures, relocations and new site openings.
While some stores have recently closed, the retailer has also opened several new shops throughout the UK in November 2022, with plans for more openings in the current year.
However, details about the number and locations of these new stores are yet to be revealed.
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Past store closures and financial struggles
In 2018, New Look faced financial challenges and sought approval from creditors to implement a Company Voluntary Arrangement (CVA). This involved cutting 1,600 staff and closing more than 85 stores due to poor performance and difficulty in repaying loans.
The CVA also included reducing rental costs and revising lease terms for 393 stores, resulting in 980 UK employees losing their jobs.
Later in the same year, an additional 25 stores were announced for closure.
Challenges in the retail industry
New Look’s store closures are not unique to the company, as retailers across the industry have been facing difficulties for years.
Online shopping’s popularity and reduced footfall during the coronavirus pandemic have impacted traditional brick-and-mortar stores.
Furthermore, high inflation has left consumers with less disposable income for everyday expenses, contributing to the challenges faced by businesses.
Other Retailers’ closures and openings
In response to the tough retail climate, several other retailers have also closed or announced store closures. Boots, for instance, will be shutting 300 stores permanently.
On a positive note, B&M has opened new stores this year despite temporarily closing its Glasgow Forge store for refurbishment and expansion works. The discount chain opened new branches in Armagh, Fazakerley, Fforestfach, Jarrow, Trade Park (Swansea) and Widnes.