Certain Landlords are forcing to gamble the company’s future, says New Look

New Look, British global fashion retailer said some of its store owners want the company to make a “gamble”, which can eventually end the Irish arm and losing 475 jobs.

The company lawyer has notified the High Court that, the company could only survive with the help of an examinership. Examinership is a process in Irish law whereby the protection of the Court is obtained to assist the survival of a company. 

The company currently is undergoing certain financial problem because of the covid pandemic.

The landlords are opposing examinership, what they want is to push the company further until it reaches a maximum point.

Justice Denise McDonald ruled that the appointment of an examiner to New Look Retailers (Ireland) Ltd, which operates 27 stores, should be confirmed.

An interim examiner will continue until the case comes to court within two weeks.

During a series of arguments on Wednesday, Mrs. Smith answered to the submissions made earlier by Rossa Fanning SC, to three opposing landowners of four stores in Dublin; Liffey Valley; Navan, Co. Meet; Mallinker, Co. Westmeath and Ballincolig, Co. Cork.

They said there was a drop in sales. In an independent analysis, it was 49 percent lower than last year.

She said that the company has been trading at a loss since the beginning of Pandemic, with all indications that it will continue to do so “for the foreseeable future”.

In 2018, the company was in a worse position, in 2019 it was able to fetch a small profit, and is now back to losing.

“If New Look got to March and continued paying debts, eventually the company was looking at liquidation, the loss of 475 jobs and the depletion of whatever dividend remained,” Ms Smith said.

They said the rejection of the lease would be possible if an examiner was appointed. She said that the landlords wanted the company to move forward by gambling its future.

She also said that if the gambling doesn’t go well, the company will be forced to bear a lot. It could make the company into history and also vanish a lot of jobs.

New Look was allowed to pay a $ 2.7 million revenue bill on Monday to allow workers to apply for the Employment Wage Subsidy Scheme (EWSS).