New Look closes all stores in the Republic of Ireland
High street fashion giant New Look will fully exit the Republic of Ireland, putting all of its workers in the country at risk of redundancy.
The retailer’s Irish arm, which employs about 347 people, has entered into redundancy following years of losses at the high street chain.
The privately-owned company said it has had to “navigate a tough external environment which has only become more unpredictable”, adding “it was no longer viable to continue trading” in the Republic of Ireland, according to the BBC.
“We have adapted to this evolving landscape by investing in our product proposition and digital offer. However, due to the increasingly volatile trading conditions we needed to expedite our existing plans, which included conducting a review of our operations in the Republic of Ireland,” the company said.
New Look staff were notified immediately after the brand appointed liquidators at the High Court and a 30-day staff consultation process has commenced, according to reports.
The change will reportedly not impact its parent company in the UK, which will continue to trade online and in store.
The retail sector has been under pressure for more than a decade, with a long-term switch to online shopping compounded by a Covid-19 hangover and high taxes. Even by early 2023, customer footfall was 10 per cent lower than in 2019, and in major cities, even less.
Retail costs are set rise by a further £7bn across the industry next year due to a combination of the minimum wage increase, the packaging levy and higher national insurance costs, according to the British Retail Consortium.
A New Look spokesperson commented: “ Over the past few years, we have had to navigate a tough external environment which has only become more unpredictable. While we have adapted to this evolving landscape by investing in our product proposition and digital offer, the increasingly volatile trading conditions have meant we need to expedite our existing plans.
“Following a review of our operations in the Republic of Ireland, we concluded it was no longer viable to continue trading so had to make the difficult but necessary decision to put the business into liquidation.
“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. We remain confident in the UK market and take pride in offering our customers great-value, high-quality fashion.”