New Look Will Face The Dilemma Of Seeking Sale Under Multiple Attacks.

Fast fashion brands seem to be in a bottleneck of development during the cold winter of retail sales. The dynamics of shutting down stores, leaving the Chinese market and changing LOGO are all showing that fast fashion is facing Waterloo's predicament.

For example, recently, the fast fashion giant Zara moved along with the 2019 spring advertisement, replacing the new Logo, retaining the original Serif serif fonts, and the letters became more slender and compact.

For 8 years of Zara replacement of Logo, the loss of profitability may result in a continuous loss of profitability. We have to make changes to renew our vitality and attract the younger generation's attention.

Recently, the UK's fast fashion brand New Look's earlier refinancing proposal has been approved, and the first new capital of about 80 million will arrive this week.

This will further dilute the ownership of investors in New Look, and if the creditors disagree, if there is no better restructuring plan, New Look will face the dilemma of seeking sale.

At the beginning of January 2019, New Look announced that it would solve its huge debt problem by March next year, and would make a debt to equity swap with the debtor, with a view to reducing its liabilities by 1 billion 300 million, so as to continue to reduce the cost of financing and give the main industry a breathing space.

New Look has been under the pressure of huge debts since its development failed.

According to statistics, New Look reached a net debt of 1 billion 265 million 400 thousand pounds at the end of March 2018, a net gain of 120 million 500 thousand pounds in the period.

Under the huge debt, New signed the CVA voluntary bankruptcy agreement with the owners in March, and decided to close 60 stores in the British market and lay off nearly 980 people to reduce the output of the cost rent.

As for the fierce competition and great changes in the fashion retail market, New Look has been losing ground both in the UK market and in overseas markets such as China and Belgium. In addition, the scandal of Christo Wiese, which controls Brait SE, has caused a certain value dive to New Look, making it more difficult to go on the market.

In October 2018, New Look officially announced its withdrawal from the Chinese market, closing 130 stores and putting more capital into the restructuring and pformation of the brand itself.

New Look, which entered the Chinese market in 2014, has totally lost its way to the Chinese market in less than four years. It is a question worth thinking about whether it is mismanaged or missed.

In addition, in mid January 2019, New Look announced that its Belgian subsidiary was bankrupt on the special task committee, and that the 110 workers would lose their jobs.

At present, the Belgian market has closed several stores including Anderlecht (Westland Shopping), Liege (M diacit diacit), Ixelles (Toison d'Or) and Bruges.

Prior to that, New Look pointed out in the bankruptcy agreement that it will launch international markets such as France, Belgium and Poland. Now the Belgian market has declared bankruptcy. It seems that the French and Poland markets are also on the way to the end.

Faced with such a market, the profitability of New Look continued to decline, resulting in a sharp decline in operating profits and beyond.

In the first half of September 22nd, sales of New Look fell 4.2%, operating profit of 22 million pounds.

The 2018 fiscal year data show that New Look's operating loss is as high as 74 million 300 thousand. Compared with 2017, the group's adjusted EBITDA loss was 10 million 700 thousand pounds.

In recent years, New Look has been working with creditors holding millions of unsecured bonds, thereby reducing the debt burden from 1 billion 350 million to about 500 million pounds.

New Look closed the store as part of the pformation plan to speed up the brand out of the debt dilemma, but the chairman of Alistair McGeorge believes that the refinancing scheme is a positive signal for the brand, will be conducive to better implementation of the pformation plan.

When it comes to fast fashion that is fast and fast, it gradually slows down when it comes to consumers who don't want to get faster.

Compared with fast fashion "fast food" consumption, personalized, fashionable and idealized brands can attract consumers' favor, such as Supreme, Off-White, Champion and so on. The fast fashion brands such as New Look, Zara and H&M are faced with a sense of crisis.

For the popular Zara, H&M, New Look, both in the local market and in the Chinese market, they always maintain their own "high cold" image, and an attitude that does not want to associate with laymen, eventually leads to the loss of the market.

When Zara and H&M can be promoted in Rome as the Romans do, New Look is still under the banner of "making a big noise", but it is just the opposite. When Zara and UNIQLO constantly introduce new series and start joint cooperation, the New Look style consistently adheres to the old design style, and does not reflect the idea of innovation.

These two situations alone are enough to push New Look into the "cold palace" in a gradually younger market.

In the changing clothing and clothing market, faced with the variable retail environment, both luxury brands and fast fashion brands are facing a new round of shuffling. Even the high ranking luxury brands are beginning to lay down their products to create more suitable products for the younger generation to attract the millennial generation.

If New Look continues to maintain a bridge that does not know how to adapt, it will be difficult to survive in the market with multiple hits.