New Look will close 60 UK stores and cut 1,000 jobs after creditors approved a restructuring plan for the retailer. The stores will close within 12 months and some staff may be redeployed. The turnaround plan will cut the fashion chain's rents by between 15% to 55% across its remaining 393 stores. Executive chairman Alistair McGeorge said it was a "tough decision" to seek a company voluntary arrangement (CVA) but was necessary to restore the chain to profitability. "It is clear we need to reduce our fixed cost base.
Annual pre-tax profits at online fashion retailer Boohoo have almost doubled to £31m - up from just under £16m last year. Its sales have jumped by 51% to almost £300m, thanks to new overseas markets. The Manchester-based firm puts its success down to "combining cutting-edge, aspirational design with an affordable price tag". Its booming sales growth has also been reflected in its share price, which has more than trebled in the past year. On its stock market flotation in 2014, it was valued at £560m.
Fashion retailers JD Sports, Sports Direct and Boohoo, are "failing to commit" to reducing their environmental and social impact, MPs say. Amazon, TK Maxx and Missguided were also described by the Environmental Audit Committee (EAC) as being among the "least engaged" in sustainable fashion and labour market initiatives. The EAC said it was "shocking" the firms were "failing to take action". Boohoo said the report did not reflect its commitment to sustainability. The findings are part of the EAC's inquiry into the sustainability of the fashion industry.
Online fashion retailer Boohoo has reported strong half-year profits and rapid growth at its fast fashion brands PrettyLittleThing and NastyGal. Boohoo Group revenue jumped 50% to £395.3m and pre-tax profits rose 22% to £24.7m in the six months to 31 August, compared with the previous year. The online fashion retailer raised its forecast for revenue growth this year. It expects sales growth of between 38% and 43%, up from its previous range of 35% to 40%. Boohoo said use of its social media content had grown dramatically.
Strong sales of plus-size and petite clothes have helped boost profit at online fashion retailer Boohoo. The company, which is aimed at 16-24 year-olds in particular, said its main womenswear range of dresses and jackets, as well as its new menswear website, also saw strong sales. Pre-tax profits jumped 129% to 14.3m in the six months to August. It also benefited from successful marketing campaigns, especially on social media. "We have... stepped up our activity on social media on Facebook Live and on Snapchat and a content drive on Instagram has helped us pass the two-million follower mark in the UK," the company said in its statement.