Fashion retailer New Look’ has plunged into the red, posting a loss of £10.4 million in the half-year to September.
Owned by South African investment firm Brait, New Look’s latest half-year result contrasts with a £59.3 million profit in the same period last year.
Same-store sales fell 8.4 per cent, while total sales dropped 4.5 per cent to £686 million.
While the company said it has “adequate liquidity and cash position to continue trading, it is reportedly in talks to renegotiate terms of a £1.2 billion debt burden.
New Look’s former CEO Anders Kristiansen left suddenly in September and his interim replacement, executive chairman Alistair McGeorge, said the results reflected a “challenging retail environment on the UK high street”.
“The immediate focus in this period of transition will be to deliver stability and get the business back to basics by reconnecting with the New Look customer and recovering our broad appeal. While we are not anticipating a reversal in fortunes overnight, I am confident we will implement the necessary changes to get the company back on track.”
Like rival fashion retailers, New Look has been hit hard by the fall in the value of the pound following the Brexit vote, which has boosted import costs, fuelled inflation and dented consumer confidence.