New Look confirms China exit plans
Fashion chain New Look confirmed today that it was planning on pulling the plug on its operation in China.
The company said it has been gradually reducing its number of stores and now intends to close its remaining 120 stores in the country by the end of December 2018.
Its Shanghai head office will close shortly after that date.
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New Look said that despite substantial investment, performance in its China operation had been below expectations and the business had not achieved the sales and profitability to support the investment required to continue.
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.”
Sky News reported last night that New Look had appointed property agent CBRE to find new tenants for its stores in China as it looked to exit the country.
The company said its strategic review of its other international markets is continuing.
New Look has stores in the UK, Republic of Ireland, France, Belgium, Poland and Germany as well as franchises in Eastern Europe, the Middle East and Asia.
The chain was bought by South African conglomerate Brait for £763.5m in 2015, but soon ran in to trouble.
In March it agreed a company voluntary arrangement with its creditors, agreeing to close 60 stores and make 980 staff redundant as it looked to cut its cost base.
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