The board of New Look Retail Group has announced its Belgium arm (NLB) has filed for insolvency following a review of its financial and trading position.
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.