British fashion retailer New Look Retail Group is set to close its remaining 120 stores in China by the end of December.
The decision to close the stores comes after the company’s board revealed its decision to exit the retail business, New Look Commerce Shanghai, in the country.
In a statement, the company said that the decision was reached due to low performance, less sales and profitability despite substantial investments in the business.
The retailer will also close its Shanghai head office following the completion of the store closure process.
New Look executive chairman Alistair McGeorge said: “Having reviewed the trading performance of our business in China and the substantial investment required to continue operations in the market, we have made the difficult decision to exit our stores in China.
“Our priority will be to support all affected staff during this time. As our turnaround plans continue, we remain focused on ensuring that New Look is well positioned to drive strong business performance and profitable growth.”
In addition, the fashion retailer will end its obligations to suppliers, landlords, government and other authorities in China as well as support all affected staff.
Furthermore, the retailer is reviewing other international markets as part of its efforts to restructure the company.
New Look offers a range of fashion products such as apparel, footwear and accessories for women, men and teenage girls in its stores.