New Look to no longer selling in China
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Embattled UK fashion retailer New Look is to quite China, closing some 130 remaining stores. The move follows a strategic review of the China business announced back in June, when the company put the brakes on an ambitious 450-store rollout plan after opening just 148.
New Look has appointed property specialist CBRE to find new tenants for the 130 remaining stores in the country.
In March, South African-owned New Look signed a Company Voluntary Arrangement with its creditors and landlords in the UK allowing 60 stores there to be closed. Chairman Alistair McGeorge at the time cast doubt on the future of the China plans announced by former CEO Anders Kristiansen.
New Look’s China exit comes two months after rival chain Topshop terminated a franchise agreement with local partner Shangpin “by mutual agreement”.
Questions & Answers
Q.Why is New Look pulling out of China?
Why is New Look pulling out of China?
The decision to leave China follows a strategic review of its business operations there. New Look had previously put a much larger 450-store rollout plan on hold.
Q.How many stores did New Look have in China, and how many are closing now?
How many stores did New Look have in China, and how many are closing now?
New Look had opened 148 stores as part of its expansion plan. The company is now closing its 130 remaining stores as it exits the Chinese market entirely.
Q.Has New Look closed stores in other countries recently?
Has New Look closed stores in other countries recently?
Yes, New Look signed a Company Voluntary Arrangement in the UK in March. This agreement with creditors and landlords allowed the closure of 60 stores there.
Q.Have other British retailers also left the Chinese market recently?
Have other British retailers also left the Chinese market recently?
Yes, rival chain Topshop also terminated its franchise agreement with local partner Shangpin in China two months before New Look's exit. Their departure was described as a mutual agreement.
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