‘Hysteria’ warning as New Look mulls 60 closures

The property industry warned against “hysteria” over retailers’ futures on Friday as New Look considers shutting 60 of its shops.

The ailing fashion retailer is weighing up several options, including store closures via a company voluntary arrangement (CVA), as well as rent reductions and an overhaul of its management structure, it has emerged.

New Look is the latest brand to come under pressure alongside High Street rivals Debenhams and House of Fraser, which have been battling tough market conditions and increasing competition from online players.

Toys R Us agreed a CVA with landlords and creditors in December.

“There has been a lot of negativity, almost hysteria, about retail failures and profit warnings,” said Ed Cooke of shopping centres trade body Revo.

“The market is often overly simplified… but the sector, and each company situation, is complex and not binary. There are many retailers who are outperforming,” he said.

Joules, Ted Baker and Fat Face enjoyed brisk festive trading.