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New Look set to close its Shrewsbury menswear store

By Lucy Todman | Shrewsbury | Business | Published:

High street fashion retailer New Look looks set to close one of its two Shrewsbury stores, citing difficult trading conditions.

New Look opened a menswear division in the Darwin Shopping Centre in October 2016.

Now, less than two years later, the company has decided to close its unprofitable branches - including the one in Shrewsbury.

The company's ladieswear store in the Pride Hill Shopping Centre is unaffected.

New Look has identified 60 out of its total 593 UK stores for potential closure.

It said it would attempt to redeploy those at risk of redundancy in other parts of the business.

Executive chairman Alistair McGeorge 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.

"A priority for us is to keep all potentially affected colleagues informed during this difficult time."

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New Look, which is working with Deloitte on the restructure, said creditors will vote on whether to accept a Company Voluntary Arrangement on March 21.

All stores will remain open as normal during the period of the proposal and the company's online sales channel will be completely unaffected, New Look confirmed.

Daniel Butters, partner at Deloitte, said: "The retail trading environment in the UK remains extremely challenging, driven by weaker consumer confidence, the implications of Brexit and competition from online channels.

"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."

Up to 980 jobs could be lost nationwide.

Lucy Todman

By Lucy Todman
@shroptod

Senior reporter for the Shropshire Star and Shrewsbury Chronicle based in Shrewsbury.

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