New Look shoppers will be pleased to hear the Lincoln branch of the fashion brand has been saved from a round of closures across the country.
The struggling clothing retailer has announced plans to potentially shut 60 of its 590 stores in UK.
It’s blaming weaker consumer confidence, “the implications of Brexit” and competition online for its decision to go into a Company Voluntary Arrangement CVA.
This action has been taken after a major decline in the revenue of the company.
The fashion outlet’s cutback will affect approximately 980 jobs, but the company said it hopes to redeploy staff.
While the final decision is yet to be taken, all UK stores will remain open as normal.
Daniel Butters, partner at Deloitte, said: “It is important to stress that no stores will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full.”
Irrespective of the final decision, the company has assured that the online sales will not be affected by this nationwide closure.
Alistair McGeorge, executive chairman 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 is the latest big High Street chain to announce financial issues.
Toys ‘R’ Us and Maplin announced administration last week and restaurant brands including Prezzo and Lincoln’s Chimichanga were also lined up for closure.