New Look France finally goes into receivership
today Mar 25, 2019
The Paris trade court has finally ordered New Look France into receivership, after introducing a job protection plan for its French subsidiary last autumn, before changing its mind and setting up a new governance team.
The proceedings were initiated with a court ruling dated March 26, and will cover a six-month verification period, designed to “enable New Look France to identify solutions for its business to be taken over, in order to ensure its continuity and safeguard jobs,” wrote the fashion chain in a press release. New Look is currently engaged in a worldwide restructuring plan.
The senior management team, led by Paul-Henri Cécillon via his corporate turnaround firm Phinancia, announced last February that New Look’s French subsidiary would be put up for sale, and has reportedly already received some expressions of interest. Worried New Look France employees organised a day-long strike in Paris a week ago, demanding that the management provide fresh information about the company's future.
During the receivership period, New Look’s 30 French stores will continue to operate.
The chain has been present in France since 2006, and is currently experiencing serious difficulties. In 2017-18, New Look’s sales in France fell by 13.6%, down to €57.9 million, compared to €67.05 million recorded the previous financial year.
In the first nine months of the 2018-19 financial year, New Look recorded a 5% decline in its global revenue. At the start of 2019, the chain’s Belgian and Polish subsidiaries were declared bankrupt.
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