New Look's Irish Operations to Cease Trading, Leaving 347 Jobs in Jeopardy

The fashion retailer New Look has announced the closure of its Irish operations, resulting in the potential redundancy of 347 employees. This decision follows years of financial challenges and struggles within the volatile Irish market. The High Court in Ireland approved the appointment of provisional liquidators on Thursday, February 20th, 2025, marking the beginning of the end for New Look's presence in the Republic of Ireland.

New Look Ireland's Financial Troubles and Market Challenges

New Look Retailers (Ireland) Ltd has been grappling with significant financial losses for several years. These losses are attributed to a combination of factors, including rising costs, increased competition, and shifting consumer spending habits. The company's statement acknowledges the “tough external environment” and the unpredictable nature of the market, highlighting the impact of supply chain issues and decreased consumer spending. The challenging market conditions, coupled with the already sustained losses, ultimately made continued operation in Ireland unsustainable. A barrister representing New Look during the court proceedings cited a liability of €15.6 million to the UK parent company and a €500,000 Revenue liability as further contributing factors to this decision. Even rent reductions negotiated in 2020, following a petition for an examiner, proved insufficient to alleviate the financial pressures faced by the Irish branch. The company had made losses for each of the last four years, ultimately declaring itself "heavily insolvent" by last month.

Attempts to Adapt to Market Changes

New Look wasn't entirely passive in responding to market changes. The company did implement various strategies to adapt to the shifting landscape. These included marketing initiatives, store adaptations, and price range trials. However, these efforts ultimately proved insufficient to reverse the company's declining fortunes in Ireland. Despite investment in product proposition and digital offerings, the volatile market conditions necessitated a more drastic response. This led to the strategic review that ultimately resulted in the decision to cease trading in Ireland and refocus efforts on the UK market and digital operations. The company stated they were forced to "expedite existing plans" in response to the volatile trading conditions.

Impact on New Look Employees and the Future of the Stores

The closure will directly impact 347 employees across New Look's 26 Irish stores. A 30-day staff consultation process is now underway, with a collective redundancy process expected to affect all employees in the Republic of Ireland. The Irish Labour Party has called for urgent action to ensure employees are adequately supported during this transition. The party's enterprise spokesman, George Lawlor, emphasized the need for clear communication regarding redundancy terms and potential redeployment options. While New Look stated its commitment to supporting its employees through this process, the uncertainty surrounding the future of many workers remains a crucial concern. The 26 stores will be closed temporarily in the coming days but will reopen on February 23rd for a clearance sale.

Support from the UK Parent Company

The closure is specific to the Irish arm of New Look. Its UK parent company and its Northern Ireland business operations will continue unaffected. The decision to liquidate the Irish business was deemed necessary as the UK parent company withdrew financial support due to the substantial accumulated debt. The decision to seek the appointment of liquidators was described as not taken lightly and was a difficult, yet necessary decision made after a comprehensive strategic review. Despite the closure in Ireland, New Look assured customers that their collections would remain accessible online through platforms like ASOS and Very.

The End of an Era: New Look's Legacy in Ireland

New Look's departure marks the end of an era for the Irish fashion scene. Since its arrival in 2003, the retailer has become a familiar presence on the high streets of many Irish towns and cities, employing hundreds of people across its retail network. The closure serves as a stark reminder of the challenges facing the retail industry, particularly in the face of changing consumer behaviours, economic pressures, and increased online competition. The closing of 26 stores across various locations including Dublin, Cork, Galway, Wicklow, and Letterkenny, will leave a noticeable absence in the Irish retail landscape. The impact of this closure is not just confined to the employees but extends to the wider economy and the local communities the stores served. New Look's story in Ireland serves as a cautionary tale for other retailers operating in a volatile and ever-evolving market.