New Look has kicked off bankruptcy proceedings for its Belgian retail arm following an ongoing review of its international operations.
The fashion retailer, which operates six stores in Belgium, will wind up its operations in the country as “the business has not achieved the necessary sales and profitability to continue its ongoing operations on a standalone basis”.
The retailer filed for bankruptcy proceedings with the Brussels Enterprise Court yesterday, with a trustee to be appointed to take charge following a court hearing scheduled for next week.
New Look’s exit from Belgium comes months after the struggling fashion retailer withdrew from China in October, which resulted in 120 store closures.
The retailer currently still has stores in the overseas markets of France and Poland.
A statement from the retailer said: “As previously announced, New Look is reviewing its non-core international markets to ensure it is well positioned to drive strong group business performance and profitable growth.
“The strategic review of New Look’s other non-core international markets continues.”
New Look struck a debt-for-equity deal with a group of key stakeholders earlier this week which will slash its debt pile from £1.3bn to £350m.