New Look to slash 80 per cent of items to less than £20 in massive sale

By Hull Daily Mail | Posted: 13 Jun 2018

Clothes shop New Look says it plans to hold a mega sale before it closes.

The fashion outlet, which in March announced plans to close its Whitefriargate store, city centre, is in crisis after reporting a huge loss in sales. The company plans to close around 10 per cent of its 593 stores nationally after agreeing a restricting plan with creditors.

As Brimingham Mail reports , New Look has now announced plans to slash around 80 per cent of its items to less than £20 in a bid to claw back sales.

Earlier this year New Look reported an operating loss of £74.3 million to the year ending March 24, and only made a £97.6 million profit the year before.

Sales in the UK have fallen by 11.7 per cent in a like-for-like basis – almost twice the 6.8 per cent decline from the year before.

New Look's executive chairman Alistair McGeorge told reports the Mirror : “Quite frankly, we have disappointed some of our best customers.

"It is interesting what happened. We had lost our prices. We had put our prices up, all we have done now is to put it back to where it should be.

"It didn't work, it was never going to work."

In March, New Look launched a restructuring plan as part of a Company Voluntary Agreement (CVA) as they announced plans to shut 60 stores, putting 980 jobs at risk.

Mr McGeorge said: "At the end of the day for a business to survive it has to have a good brand and be run properly. A CVA alone is not going to save a business."

The poor trading news from New Look comes after House of Fraser proposed a CVA, saying it intended to shut 31 stores, putting 6,000 jobs at risk.

Mothercare and Carpetright have also undertaken CVAs so far this year in a bid to save on costs.

Torrid trading on the high street has triggered a swathe of retail failures with Toys R Us , Maplin and Poundworld all entering administration.

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