New Look scraps 12 mn pounds pay scheme

After announcing the departure of Danny Barrasso, managing director UK & ROI, New Look has scrapped a 12 million pounds (16.6 million dollars) pay scheme, announced in 2015, states a This is Money report. In 2016, the company banking upon buoyant business prospects also raised it by several million pounds. However, the company had to roll it back after its South African owner Brait cut the nominal value of the fashion business to zero.

The development also follows after the company recently reported 6.3 percent fall in its third quarter revenue at 1,069.2 million pounds and 10.6 percent drop in the group like-for-like sales as well as 10.7 percent sales decline in the UK. New Look plans to close around 60 stores, 10 percent of its 594 store estate in the UK.

Last month, according to The Guardian, credit insurer Euler Hermes decided to withdraw cover for some of New Look’s suppliers citing financial troubles at the fashion chain. New Look acquired by the South African private equity firm Brait for 780 million pounds (1,080.7 million dollars) in 2015, is struggling with a debt of 1.2 billion pounds (1.6 billion dollars).

Picture:New Look website