New Look to cease trading in Ireland with loss of 347 jobs

The Irish arm of fashion retailer New Look has sought the appointment of provisional liquidators as it seeks to wind down its operations.

The company employs a total of 347 staff across its 26-store network in the Republic of Ireland. Most of its stores are small to medium-sized outlets, employing an average of 12-13 staff per store.

The UK-owned retailer said it decided to wind down its Irish operations after several years of sustained losses and challenging market conditions.

The High Court on Thursday approved the appointment of Shane McCarthy and Cormac O’Connor of KPMG Ireland as provisional liquidators over the business and its assets.

Mr Justice Brian Cregan was told that New Look Retailers (Ireland) Limited had built up debts to such an extent that its UK-based parent company was withdrawing financial support and that provisional liquidators were now required due to the "substantial" debt.

Barrister John Lavelle told Mr Justice Cregan that the company had experienced financial challenges such as the pressure of the cost of living, staff costs and consumer spending moving online.

Mr Lavelle said the company had, in 2020, petitioned to have an examiner appointed, which was resisted by their various landlords, but it did eventually agree rent reductions for "most stores".

Mr Lavelle said the Irish branch had made a loss in each for the last four years and that the company, New Look Retailers (Ireland) Limited, which entered the Irish market in 2003, was "no longer viable".

He said that, in the absence of any alternative financial support, the company was insolvent but said it was the company's intention to continue to trade and remain open for the next couple of weeks so that it could sell the some €2.4 million stock held to benefit creditors.

Mr Lavelle said the company had also amassed a Revenue liability of around €500,000 even though the company had been solvent up to 2022.

Mr Justice Cregan approved the appointment of Shane McCarthy and Cormac O'Connor of KPMG Ireland as the provisional liquidators and adjourned the matter to next month.

In a statement, New Look said its Irish staff were notified immediately following the appointment of provisional liquidators and further staff engagement is planned over the coming days.

Over the coming days, a 30-day staff consultation process will commence with a collective redundancy process, impacting all colleagues in the ROI also envisaged.

"The decision to seek the appointment of liquidators was not taken lightly," New Look said on Thursday.

"New Look’s Irish operation has struggled for some years, impacted by a range of factors including supply-chain and 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."

A New Look spokesperson added: "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 included conducting a review of our operations in the Republic of Ireland."

Following this review, the group said it "regrettably" concluded it was no longer viable to continue trading here, making 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 consumer 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, and high-quality fashion."

New Look stores will be closed over the coming days, before re-opening on 23rd February for a clearance sale.

New Look entered the Irish market in 2003 and operates a network of 26 stores across the Republic. Shoppers in the Republic can continue to access New Look’s collections through Asos and Very.