NLB, which currently operates six stores in Belgium, said its board concluded it is “unable to continue trading”, and has decided to therefore wind up its operations.
In a statement New Look said: “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.
“NLB filed for bankruptcy proceedings with the Brussels Enterprise Court on 16 January 2019. It is expected that a trustee will be appointed who will take charge after a court hearing planned for the week commencing 21 January.”
It added: “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.”
The news comes after earlier this week New Look announced a restructuring of its large debt pile, which it said has been holding up the companies ability to accelerate a turnaround of its operations. The company said it will slash its debt from £1.35bn to £350m under a debt-for-equity swap with creditors.