New Look Stores In China Were Closed In February.

According to the world clothing shoes and hats net, in February 28, 2019,

In its official micro-blog, it announced a notice on handling the refund card of prepaid cards.

The announcement revealed that New Look's stores in China were all closed in February 2019.

As early as October 18, 2018, New Look has announced that its 130 stores in China will be completed by the end of 2018, and more funds will be used.

Restructuring and pformation of its business.

Entered China in 2014

It is a question worth thinking about whether New Look has completely withdrawn from the Chinese market in less than 4 years.

According to the performance data released by New Look in mid February, its sales fell by 5% to 1 billion 16 million pounds in the first 9 months to December 31, 2018, and the profit before interest tax depreciation and amortization rose 78% to 78 million pounds. Net profit was 38 million 500 thousand pounds, and the same period last year was a loss of 5 million 100 thousand pounds.

New Look emphasized in the earnings report that the pformation plan developed by New Look in 2018 has achieved initial success. Thanks to the improvement of the brand's women's clothing business and the remarkable improvement in online retail sales, its sales have been improved for the 3 consecutive quarter compared with the same period last year, and the sales in the third quarter also recorded a small increase of 0.9%.

However, New Look has had a hard life in recent years, which is heavily affected by too much debt and huge network of stores.

According to statistics, New Look reached a net debt of 1 billion 265 million 400 thousand pounds at the end of March 2018, a net gain of 120 million 500 thousand pounds in the period.

In order to reduce the burden of rental cost of huge stores, in March 2018, New Look decided to sign CVA voluntary bankruptcy agreement with the owners, planned to close 60 stores in the UK market, and another 6 branches or sub leased to third parties may also be closed, thereby reducing rental costs.

In October 2018, New Look decided to terminate its expansion plan in China, closing its existing 130 stores and Tmall flagship store, and has officially withdrawn from the Chinese market.

After closing hundreds of stores, New Look saved 78 million of its operating cost last year, and the debt burden dropped from 1 billion 350 million to 500 million.

At the beginning of January 2019, New Look announced that it would solve its huge debt problem by March next year, and would make a debt to equity swap with the debtor, with a view to reducing its liabilities by 1 billion 300 million, so as to continue to reduce the cost of financing and give the main industry a breathing space.

According to the news, New Look's earlier refinancing scheme was passed in January 2019, which means that equity is further diluted. If the creditor dissenters, if the management does not have a better restructuring plan, New Look will be faced with the dilemma of seeking sale.

Fast fashion is undoubtedly facing a new round of industry reshuffle, leaving the poor performing market is only the first step in the reform of New Look, and faces more difficult challenges in the future.

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