DESPITE assurances it won’t be closing in the near future, the outlook for the Petersfield branch of a national clothes retailer is uncertain.
On Wednesday (March 7) New Look said it was looking at closing 60 of its 593 UK stores, and reducing the rent it pays on most of its remaining shops.
The Petersfield New Look store in Rams Walk is not on the closure list, and will continue opening as normal, said a New Look spokesman.
But he warned that only 148 of its stores were completely unaffected by the cost cutting plans, aimed at returning the chain to profitability.
And he couldn’t say if the Petersfield store is one of the remaining 393 whose long term future could depend on a rent reduction.
Among other shopping malls, M and G Real Estate deals with all the leases and tenancies in Rams Walk.
But although New Look has made the estate management company aware of its proposals, M and G wouldn’t discuss individual stores on any of its sites.
The store closure and rent reduction proposals are part of a Company Voluntary Arrangement (CVA) New Look have put forward.
The CVA is now being studied by all New Look creditors, including landlords.
If the creditors sign up to it, rents will be reduced, 60 stores closed, and 980 staff offered either alternative employment, or a redundancy package.
It is unclear what will happen if the creditors don’t support the proposals.
New Look 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 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.”
New Look said its online business was not affected, and would continue operating as usual.
An announcement on the outcome of the CVA discussions is due to be made on Wednesday, March 21, and until then all the New Look stores will continue trading as normal.