Real fears are growing that many high street retailers will pull their physical shops in favour of going solely online only in Ireland.
347 of New Look’s employees nationwide will be laid off as the fashion brand plans to leave Ireland, reports RTE.
After years of severe losses and difficult market conditions, New Look Retailers Ireland Ltd. attempted to wind down its Irish business today by appointing interim liquidators.
Shane McCarthy and Cormac O’Connor of KPMG Ireland have been appointed by the High Court to serve as interim liquidators for the company and its assets, reports RTE.
Following this appointment, New Look’s employees were promptly informed, and more worker involvement is scheduled for the days ahead.
With 26 locations around the Republic of Ireland, New Look has 347 employees overall. The most of its locations are modest to medium sized, with an average of 12–13 employees per location, reports RTE.
Over the next several days, a 30-day staff consultation process will begin.
“Regrettably, a collective redundancy process, impacting all colleagues in the ROI is also envisaged,” the company said in a statement, reports RTE.
“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 said, reports RTE.
According to the firm, New Look Group determined it was no longer feasible to go on doing business in Ireland after conducting a strategic evaluation of the Irish company.
“The group will refocus investment on its UK business and its digital offering. Our Irish business has struggled for many years due to rising costs and squeezed consumer spending, despite our efforts to turnaround the performance,” a spokesperson said, reports RTE.
“Our focus now is on supporting our colleagues through this process,” reports RTE.
For a clearance sale, New Look stores will reopen on February 23 after being closed for the next several days.
With 26 locations around the Republic of Ireland, New Look made their debut in the Irish market in 2003, reports RTE.
The revelation was seen as “deeply concerning” by George Lawlor, spokesperson for Labour’s Enterprise, Tourism, and Employment.
“This is not just a business decision – it has real human consequences for the dedicated staff. These workers and their families now face an uncertain future, and it is essential that their rights and entitlements are protected,” reports RTE.
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