UK fashion retailer New Look wants to accelerate its store closures plan ahead of expected spring cost rises linked to the government’s autumn Budget.

Around a quarter of the retailer’s 366 UK stores are understood to be up for review when leases expire, putting a significant number of its 8,000 workforce at risk, The Times reported.

The retailer has restructured its store estate twice since 2018, downsizing its portfolio from 600 UK stores. Following the completion of its CVA in 2021, it ended last year with those 366 stores.

While some of its stores may have already been earmarked for closure, all of which are on relatively short leases that link rents to store turnover, the likely acceleration is judged to be a direct result of the looming changes announced that include the rise of employers’ National Insurance contributions from 13.8% to 15%, while the threshold has lowered from £9,100 to £5,000.

A New Look spokesman told the newspaper: “Our store estate is an important part of our business, alongside our best-in-class website and app.

“We have recently invested over £3 million in our stores in Greater Manchester to trial new omnichannel initiatives to improve customer experience. Using the learnings from these trials, we are now upgrading a further 17 stores across the country.”

However, it admitted that “on occasion we do have to close stores, either due to the landlord’s request or because the site becomes unviable. However, we remain on the lookout for appropriate new opportunities across the country and continue to invest in our existing store estate”.

In October, New Look (trading as New Look Retailers Ltd) reported year-end results to 30 March, admitting to “tough conditions in the latest year”, despite progress being made.

New Look managed to cut its pre-tax loss to £21.7 million for the year to 30 March, down from an £87.8 million. However, sales fell 8.9% to £769.2 million, citing “store closures and tough trading conditions”.

Other retailers are likely to follow suit on the closures front, unless rent reductions can be negotiated with landlords. The Centre for Retail Research forecasts that 17,350 stores will close this year, up from about 13,500 last year.