The fashion retailer New Look is set to close all its stores across Ireland, leading to significant job losses and affecting hundreds of employees. This decision, resulting from prolonged financial difficulties, includes the liquidation of the Irish arm of the company, with the prospect of approximately 347 employees losing their jobs.
New Look, which has operated stores in Ireland since 2003, made the announcement last week, stating it could no longer sustain operations due to 'years of sustained losses and challenging market conditions.' Affected stores include significant locations such as the Northside Shopping Centre and Liffey Valley Shopping Centre, both situated in Dublin, along with several others across the country.
The confirmation of the mass closures coincided with reports of confusing and chaotic closing-down sales, where customers flocked to shops for discounts as the announcement broke. Many shoppers expressed anger after discovering they could not use their gift vouchers, which added to the discontent during the sales period.
“I'm actually fuming to be honest,” said Jane Manning, a dissatisfied shopper whose birthday gift voucher went unused. “I said I’d wait for summer for their new stuff.” Similar sentiments echoed around various stores as customers vented their frustrations on social media, highlighting the chaos encountered during the clearance efforts.
With the company now under the management of provisional liquidators due to the liquidation process, the fate of unused gift vouchers remains uncertain. Shoppers are advised to submit claims for redeemable amounts on unspent vouchers, which will be treated as unsecured claims amid the liquidation.
The Irish Labour Party has called for immediate action to assist the workers affected by the closures. “New Look Retailers Ireland Ltd must recognise the human impact of this decision and immediately engage with workers in a meaningful and constructive manner. Workers must be provided with clarity on redundancy terms or redeployment options. They cannot be left in limbo,” said George Lawlor, the party’s enterprise spokesman.
Expediting the liquidation process was emphasized by New Look, which stated: “Our Irish business has struggled for many years due to rising costs and squeezed consumer spending, yet we adapted to changing circumstances. Following strategic reviews, we concluded it was no longer viable to trade.” This move underlines the impact of the challenging retail environment, which has seen other retailers across the country also facing similar fates.
New Look’s liquidation marks another blow to the Irish retail sector, which has been significantly impacted by shifts in consumer spending patterns and rising operational costs. The decision to liquidate follows years of financial strain, culminating in statutory losses recorded before tax reaching £87.8 million for the 52 weeks leading to March 25, 2023.
Despite these closures, New Look has reaffirmed its commitment to maintaining its business presence within the UK, asserting confidence in the UK market and focusing on its digital offerings. The retailer plans to refocus investment predominantly on its operations within the UK, where it operates 344 stores and online sales.
The affected locations will undergo impacted staff consultations, with workers invited to engage over the next 30 days to discuss redundancy and other matters surrounding their employment. Meanwhile, closure dates for the final stores will be determined by KPMG, the external liquidators managing the process.
New Look’s history in Ireland has been marked by growth projects but has faced increasing difficulties as market conditions shifted. Retailers within the industry ally to adapt rapidly, yet many have failed to keep pace, resulting in stories like this one becoming more commonplace.
Consumers are left pondering the consequences of the unraveling retail climate as they navigate financial and emotional outcomes stemming from closures like this one. Efforts to alleviate customer distress through sales cannot erase the reality of operational failures, and as liquidation progresses, the overarching sentiment is one of frustration and loss.
Moving forward, New Look’s operational decisions will certainly influence similar retailers and could trigger discussions on adaptive strategies necessary for sustaining business against economic challenges. The closure of New Look marks not just the end of operations for this retailer but stands as testimony to the grinding forces facing numerous businesses across the retail sector.
With uncertainties aplenty and job losses on the horizon for so many, stakeholders will be eager to see how New Look navigates the liquidation, ensuring its remaining employees and customers are treated fairly amid this significant change.