The Belgium division of New Look has filed for insolvency as the UK fast fashion retailer continues to review its performance in international markets.
The retailer said following a review of the financial and trading position of New Look Belgium SA (NLB), which operates six stores in the country, it has decided to wind up its operations.
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“NLB’s performance has been below expectations and the business has not achieved the necessary sales and profitability to continue its ongoing operations on a standalone basis,” New Look said in a statement.
The division filed for bankruptcy proceedings with the Brussels Enterprise Court on Wednesday (16 January). It is expected that a trustee will be appointed who will take charge after a court hearing planned for next week.
New Look has previously announced it is reviewing its non-core international markets to ensure it is well positioned to drive profitable growth. The strategic review of New Look’s other non-core international markets continues.
NLB’s filing comes just days after New Look reached an agreement in principle with its key financial stakeholders to cut its debt by GBP1bn (US$1.3bn) and raise GBP150m in new capital to boost the business.
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