Doncaster New Look set to close as firm plans to shut 60 stores with loss of 980 jobs
A Doncaster branch of fashion store New Look has been earmarked for closure as the firm bids to stave off shutting down entirely.
The firm has announced plans to reduce its UK store count amid challenging trading performance and a "difficult" retail environment with the Frenchgate Centre men's branch one of those under threat.
The company is instigating a Company Voluntary Arrangement (CVA) and seeking approval from creditors on a plan to improve the operational performance of the fashion outlet.
This is a procedure that enables businesses in debt to pay off debt while trading – in an effort to prevent it from closing entirely.
Under the proposal, New Look said it has identified 60 out of its total 593 stores in the UK for closure, alongside a further six sites which are sub-let to third parties.
Under the changes, it said redundancies are highly likely - with 980 roles at risk of redundancy.
However, it said all efforts will be made to redeploy colleagues within the business where possible.
All UK stores will remain open as normal during the period of the proposal and the company’s online sales channel will be completely unaffected by the proposed changes.
Alistair McGeorge, of New Look, 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 and will now seek creditor approval on our CVA proposal. A priority for us is to keep all potentially affected colleagues informed during this difficult time.”