New Look Retailers (Ireland) today announced it will be winding down its Irish operations following several years of sustained losses and challenging market conditions.
The clothing retailer today sought the appointment of Provisional Liquidators, and the High Court approved Shane McCarthy and Cormac O’Connor of KPMG Ireland to the roles over the business and its assets.
New Look’s staff were notified immediately following this appointment, with further staff engagement planned for the coming days.
The franchise employs a total of 347 staff across its Republic of Ireland network of 26 stores, with a majority of those stores being of small- to medium-sized and employing an average of 12-13 staff per store.
A 30-day staff consultation process will commenced in coming days with a collective redundancy process impacting all ROI staff predicted.
According to sources, the decision to seek liquidation was not taken lightly, and came following years of struggling, impacted by factors such as supply chain issues, in-market costs and squeezed consumer spending.
New Look has undergone changes to adapt to this market – including marketing initiatives, store adaptations and price range trials.
However, following a strategic review of the Irish business, New Look Group concluded it was no longer viable to continue trading in Ireland.
The group will refocus investment on its UK business and its digital offering, and Irish shoppers will still be able to access New Look’s collections through online retailers ASOS and Very.
Since entering the Irish market in 2003, New Look built its store network across the country and currently operates 26 ROI stores.
‘Difficult But Necessary’
A New Look spokesperson said, “Over the past few years, we have had to navigate a tough external environment which has only become more unpredictable.
“We have adapted to this evolving landscape by investing in our product proposition and digital offer.
“However, due to the increasingly volatile trading conditions we needed to expedite our existing plans, which including conducting a review of our operations in the Republic of Ireland.
“Following this review, the group regrettably concluded it was no longer viable to continue trading here, so it has made the difficult but necessary decision to enter liquidation in this market.
“Our Irish business has struggled for many years due to rising costs and squeezed customer spending, despite our efforts to turn around the performance.
“Our focus now is on supporting our colleagues through this process.
“We remain confident in the UK market and take pride in offering our customers great value, high-quality fashion.”
All New Look stores will remain closed for the coming days, before reopening on Sunday 23 February for a clearance sale.
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