Fashion chain New Look has swung to a full-year loss amid plunging sales on the high street and online.
The retailer, which has three stores on the Fylde coast reported an operating loss of £74.3mf or the year to March 24, having made £97.6m profit in the previous year.
New Look’s sales in the UK fell by 11.7 per cent on a like-for-like basis, accelerating from a decline of 6.8 per cent the year before. Website sales slumped by 19.2 per cent.
Total revenue was £1.34bn, down from £1.45bn year on year.
In a bid to lure back customers, New Look’s executive chairman Alistair McGeorge is lowering prices.
“Quite frankly, we have disappointed some of our best customers,” he said.
“It is interesting what happened. We had lost our prices. We had put our prices up, all we have done now is to put it back to where it should be.
“It didn’t work, it was never going to work.”
The business was hit with a £34.2m one-off cost, which included an exceptional charge from stock clearances.
New Look launched a restructuring plan in March, announcing it would shut 60 stores as part of a Company Voluntary Agreement (CVA), affecting 980 jobs.
The company said on Tuesday the CVA would allow the business to save £40m.
Mr McGeorge said: “At the end of the day for a business to survive it has to have a good brand and be run properly. A CVA alone is not going to save a business.”
The poor trading news from New Look comes after House of Fraser proposed a CVA, saying it intended to shut 31 stores, putting 6,000 jobs at risk.
Mothercare and Carpetright have also undertaken CVAs so far this year in a bid to save on costs.
Torrid trading on the high street has triggered a swathe of retail failures with Toys R Us, Maplin and Poundworld all entering administration.