Chairman Alistair McGeorge says fashion retailer will consider closures in areas where it has two stores

Fashion retailer New Look could close up to 100 stores over the next three years unless it can strike better deals with landlords.

Its chairman, Alistair McGeorge, said only a handful of its near 600 UK outlets were unprofitable but it would consider closures where it made financial sense such as in locations where it had two shops. In recent years it has been opening larger branches and McGeorge said its ideal footprint was 450-500 stores albeit covering the same amount of total space.

The former Matalan chief executive was parachuted in to lead a turnaround of the private equity-backed chain last year and has focused on cutting costs and overhauling ranges which were “too young” and had alienated shoppers. It has also been refurbishing stores with sales at the 62 shops that have received a makeover 10% higher than untouched outlets. McGeorge acknowledged its more than £1bn debt pile remained the elephant in the room but was hopeful it could “find a way” to pull off a refinancing within 18 months.

UK like-for-likes were down 3.1% in the six months to 22 September but that was a pickup from last year when sales slumped 5.7%. The retailer, which made a first half loss of £13.6m, expects to return to the black at the full-year stage, drawing a line under a two-year hiatus which culminated in a £54.5m loss in the year to 24 March.