New Look to exit Ireland, 347 workers facing redundancy

Fashion retailer New Look is to exit Ireland and its 347 workers around the country are facing redundancy.

New Look Retailers Ireland Ltd today sought the appointment of provisional liquidators as it sought to wind down its Irish operations following several years of sustained losses and challenging market conditions.

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

New Look’s staff were notified immediately following this appointment and further staff engagement is planned over the coming days.

New Look employs a total of 347 staff across its 26-store network in the Republic of Ireland. A majority of its stores are of small to medium size, employing an average of 12-13 staff per store.

A 30-day staff consultation process will commence over the coming days.

"Regrettably, a collective redundancy process, impacting all colleagues in the ROI is also envisaged," the company said in a statement.

"The decision to seek the appointment of liquidators was not taken lightly. 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 said.

The company said that 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."

"Our Irish business has struggled for many years due to rising costs and squeezed consumer spending, despite our efforts to turnaround the performance," a spokesperson said.

"Our focus now is on supporting our colleagues through this process."

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

New Look first entered the Irish market in 2003 and operates a network of 26 stores across the Republic of Ireland.

'Deeply concerning'

Labour's Enterprise, Tourism and Employment spokesman George Lawlor said the news was "deeply concerning".

"This is not just a business decision - it has real human consequences for the dedicated staff. These workers and their families now face an uncertain future, and it is essential that their rights and entitlements are protected."

He added that New Look must recognise the human impact of the decision and engage with workers in a "meaningful and constructive manner".

"Workers must be given clarity on redundancy terms or redeployment options. They cannot be left in limbo."

Deputy Lawlor added that his office was open to any of the Wexford store workers in need of assistance.

Mandate represents some of the New Look workers.

The unions said today was a difficult day for staff.

"Because New Look is shutting down its complete operation in the Republic of Ireland this amounts to a collective redundancy which requires a 30-day consultation period and we know our members were informed this morning by the liquidators that the obligation to engage will be honoured," said Jim Fuery, Interim Assistant General Secretary, Mandate.

"We will be using this 30 day period to ensure that our members interests are represented," Mr Fuery said.

Retail closures

Meanwhile, troubled fashion chain Quiz has also shut 23 stores in the UK and Ireland after falling into administration, putting around 200 jobs at risk.

It said that its Irish stores in Athlone, Tallaght and Newbridge would close, while stores in Derry and Enniskillen will also shut.

The retailer has closed the shops despite being bought in a pre-pack administration deal by a subsidiary of the founding Ramzan family.

Last month, the company said it was searching for emergency funding, amid fears it would run out of cash by March.

Quiz confirmed that it hired insolvency practitioner Teneo as administrator to Zandra, its subsidiary business which runs its shops in the UK and Ireland.

'Warning sign'

Retail Excellence Ireland said that the exits of New Look and Quiz from the Irish market are a warning sign to the Government that business costs have become completely unsustainable for many retailers.

"The Government's promise to review PRSI and VAT as a measure to help alleviate the pressure on retailers needs to happen as soon as possible," said Jean McCabe, CEO of Retail Excellence Ireland.

"We need to see action now before more doors close," Ms McCabe said.