UK fashion retailer New Look to exit 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.What is the total number of stores New Look will be closing in China?
What is the total number of stores New Look will be closing in China?
New Look is closing approximately 130 remaining stores as part of its exit from the Chinese market. This decision follows a strategic review of its business operations in the region.
Q.When did New Look first indicate it was reviewing its China business plans?
When did New Look first indicate it was reviewing its China business plans?
The company announced a strategic review of its China business in June. At that time, it also paused an ambitious plan to open 450 stores, having only opened 148.
Q.Which other UK fashion retailer has recently scaled back its operations in China?
Which other UK fashion retailer has recently scaled back its operations in China?
Rival chain Topshop terminated its franchise agreement with local partner Shangpin two months before New Look's China exit. This was described as a mutual agreement.
Q.Who is assisting New Look with finding new tenants for its closed stores in China?
Who is assisting New Look with finding new tenants for its closed stores in China?
New Look has appointed property specialist CBRE to help find new tenants for the 130 stores it is vacating in China. This is part of the process of exiting the market.
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