New Look liquidates Irish business, 26 stores to close

Fast fashion retailer New Look is believed to be winding down its operations in Ireland, where a subsidiary for the company has looked to appoint provisional liquidators after battling losses over several years.

The High Court has approved the appointment for New Look Retailers (Ireland) Limited after its parent company said it was withdrawing financial support for the subsidiary, according to multiple news outlets. Shane McCarthy and Cormac O’Connor of KPMG Ireland have been named as liquidators of the business.

New Look currently operates 26 stores in the Republic of Ireland (ROI), through which it employs around 347 staff. These employees, who were notified immediately following KPMG’s appointment, will now be subject to an impending 30-day staff consultation process.

Strategic review of Irish business determined unviable operations

In a statement to the press, a spokesperson for New Look confirmed that the redundancy process would impact all colleagues in the ROI. It added: “The decision to seek the appointment of liquidators was not taken lightly. New Look’s Irish operation has struggled for some years, impacted by a range of factors including supply-chain and in-market costs, and squeezed consumer spending.”

New Look noted that the liquidation came after a strategic review of the Irish business determined that it was no longer viable to trade in the region. As such, the company will refocus investments on its UK business and digital offering.

The statement continued: “Our Irish business has struggled for many years due to rising costs and squeezed consumer spending, despite our efforts to turnaround the performance. Our focus now is on supporting our colleagues through this process.”

Stores will remain closed until February 23, when they will briefly reopen for clearance sales.

Difficulties surrounding British fast fashion retailers has been prominent this week, with the news of New Look’s Ireland exit coming just hours after it was revealed that Quiz had also fallen into administration. The filing impacts the retail subsidiary for Quiz’s UK and Ireland business, and has resulted in the closure of 23 stores across the two regions.

A subsidiary of Quiz’s founding Ramzan family has snapped up the remaining locations in a pre-pack administration deal.

FashionUnited has contacted New Look for a request to comment.