New Look to axe 1000 jobs and 60 stores
Executive canada goose factory outlet chairman Alistair McGeorge said it was a „tough decision“ to seek a canada goose uk shop company voluntary arrangement (CVA) but was necessary to restore the chain to profitability.
„It is clear canada goose outlet parka we need to reduce our fixed cost base. We are therefore pleased to have gained the canada goose outlet store support of our creditors to address our over rented store estate,“ he said.
Analysis: Emma Simpson, business correspondentThe canada goose outlet reviews outcome of today’s meeting was never in much doubt. Landlords aren’t uk canada goose outlet happy, but felt they had little alternative to Canada Goose Outlet agree. New Look says it was paying over the odds canada goose outlet canada on many of its stores. But landlords feel they’re the ones having to take a huge financial hit because of management failures.
It will be interesting to see how many will now use the break canada goose outlet shop clauses allowed as part of this CVA to bring in new tenants willing canada goose black friday sale to pay more rent. One landlord I canada goose store spoke to has already received expressions of interest.
Today’s move will buy New Look some crucial breathing space but is it just a sticking plaster for a business that’s facing a toxic mix canada goose clearance sale of canada goose jacket outlet problems.
The restructuring is part of Mr Canada Goose Jackets McGeorge’s strategy to reduce costs and refocus the brand on its core 25 canada goose outlet store uk to Canada Goose online 45 year canada goose black friday sale canada goose coats old customers.
New Look is just the latest cheap Canada Goose High Street brand facing a survival of the fittest battle with rising costs and consumer spending that has been squeezed by inflation cheap canada goose uk and stagnant wages.
On top of that New Look overstretched itself with nearly 600 stores across the UK, an unsustainable weight of debt, and a faltering strategy to attract younger consumers.
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Mr McGeorge, who ran New Look between 2012 and 2014, was brought back in November as the firm’s sales tumbled.
He cancelled a plan to move the company’s headquarters to canada goose outlet uk sale Kings Cross and decided it should change tack. canada goose canada goose cagooseclearance outlet jackets Rather than stocking items aimed at younger, more fashion conscious consumers, he thought it should refocus on selling cheaper, „back to basic“ items with broader appeal.
But New Look’s biggest canadian goose jacket problem canada goose factory sale will remain the „obscene“ Canada Goose sale number of shops its still runs with the associated costs, says Charlotte Pearce, analyst at Globaldata.
„A 10% cut isn’t enough,“ she says. canada goose outlet „I don’t know any other retailer that has such a huge store base.“
When Mr official canada goose outlet McGeorge left canada goose outlet online New Look in 2014 the brand had 2.6% of the UK clothing market. Since then its fallen to below 2%.
An agreement from landlords to renegotiate rents is a start. „It’s canada goose uk outlet a step in the right direction. It just doesn’t go far enough,“ Ms Pearce says.
„They need to keep rationalising and cut the store base in the long run. That’s how retail is going. It’s about getting the right stores in the right locations.“
But New canada goose outlet uk Look faces other canada goose outlet toronto Canada Goose Coats On Sale factory challenges in the form of rising buy canada goose jacket costs. Richard Lim, Canada Goose Online at the Canada Goose Clearance buy canada goose jacket cheap consultancy Retail Economics says the canada goose outlet canada goose uk black friday new york city fall in the value of sterling, rising wage costs and business rates have contributed to the pressure on goose outlet canada retailers.
While some online brands successfully attracted younger consumers to their sites, Canada Goose Parka New Look’s online sales were sharply lower last year. And on the High canada goose clearance Street where they canada goose outlet in usa were supposed to hold sway, they canada goose outlet online uk faltered.
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