Fighting a new kind of chain fashion boarded the huge annual loss of nearly £235 m after a tumultuous year that included the return of his former boss Alistair McGeorge attempt the second twist chain with large debt.
“I could not stop these numbers happening, she was ordained by the time I joined,” McGeorge said.
He accused in a heavy version, including the nearly 20% drop in sales on the previous management team to drive the “young and trendy” audience. “We lost contact with our main customers and received our packages incorrectly,” said McGeorge.
Dark new results are in stark contrast with the pace of sales of its rivals, Oh-Oh, and provided new evidence of the gap between the physical and digital high street.
Total sales in the UK new look stores open over a year fell by nearly 12% in the year to March 24. Total turnover fell by £107 m to $ 1.3 billion.
The chain belongs to the Brait private equity firm whose largest shareholder is South African tycoon Christo Wiese. Brait paid £780m for a controlling stake in a new form in 2015 and the retailer faces a £1.2 billion debt.
In March, New look has launched a company voluntary agreement (CVA), in the form of insolvency, be used to throw away the junk shops. In the framework of the restructuring plan of up to 60 593 new look stores are expected to close as the rent for the nearly 400 other branches to cut, to shave £40m from its annual rent.
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Photos: Matthew Horwood/Getty Images Europe
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However, McGeorge said he did not expect any stores to complete this year, because, after the wave of other vegetables from retailers including house of Fraser and lines, homeowners are increasingly refusing to return the keys and cover the ongoing costs of empty spaces themselves.
As a result, the New look can take store freely. “We are not in a hurry to close them, if it is in our gift,” says McGeorge.
Many retailers with large estates trying to absorb a significant increase in business performance, and increasing labor costs by the introduction of the national minimum wage and collection of discipleship.
At the same time, Britons are cutting spending on clothing and household goods due to the lack of available funds. In the latest sign of distress caused by this network of discount stores cocktail Poundworld crashed into administration on Monday, putting more than 5,000 jobs under threat.
Oh, the owner of a fast-growing PrettyLittleThing and nasty Gal brands, win sales from traditional high street retailers by targeting a generation that, through its mobile phone shops and draws its inspiration from the style of Instagram.
Sales of the group increased by 52% to £183.6 m in the three months to 31 may, but the stars were PrettyLittleThing and nasty Gal, where sales more than doubled in the period.
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Boohoo shares on Tuesday were down 2% at 215p at lunch time; two years ago they change owners 58p.
House of Fraser CVA, which includes the proposed closure of 31 of the 59 stores, is controversial with landlords who are angry they are asked to take a hit, while other lenders are in force.
“Cva will not save a bad brand,” says McGeorge. “We are dealing with our removable position and stopped us out of money. The owners would come out of administration in a much worse position.”