New Look closes China stores
New Look will exit its remaining 120 stores in China by the end of December this year.
The retailer will also close its head office in Shanghai shortly after the store closures.
It is thought that CBRE has been appointed to find new tenants for the vacated stores.
New Look will exit its remaining 120 stores in China by the end of December this year.
The retailer will also close its head office in Shanghai shortly after the store closures.
It is thought that CBRE has been appointed to find new tenants for the vacated stores.
New Look said it will “ensure its obligations to suppliers, landlords, government and other authorities in China are concluded satisfactorily and will support all affected staff”.
In a statement, New Look said that despite substantial investment in the Chinese market, sales and profitability were “below expectations”.
A strategic review of the company’s other international markets is ongoing.
Alistair McGeorge, executive chairman of New Look, 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.”
New Look previously filed for a company voluntary arrangement in March, paving the way for 60 store closures in the UK, alongside revised lease terms and rent reductions ranging from 15%-55% across 393 stores.
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