Scottish stores under threat as New Look plans closures
Troubled fashion retailer New Look could be set to close Scottish stores as it plans to cut around 10 per cent of its branches as it continues to struggle with the weight of its debt.
Sky News reported that New Look, which was founded in England but is now owned by a South African investment company, is planning to commit to a Company Voluntary Arrangement (CVA), which would lead to restructuring.
The retailer has 600 stores in the UK, with around 50 of those in Scotland. Ten per cent of closures would see around 60 stores shuttered, with plans to try and renegotiate rental agreements also planned.
The firm is struggling to deal with the rise in online shopping, and recently announced it wouldn’t go through with a planned move to a new HQ at Kings Cross in London.
The CVA would see creditors allow a chunk of the company’s debt to be paid back over a fixed timescale.
New Look has six stores in and around Edinburgh, and a similar amount in Glasgow.