From New Look to Select Fashion: Inside the retail collapse threatening the UK high street

Fashion United

18-07-2025

The UK retail landscape continues to face mounting challenges. Amid rising operational costs, the long-tail impact of the pandemic and ongoing supply chain disruptions, many businesses are navigating an increasingly volatile environment. An uncertain outlook remains for a significant portion of the sector – and the country is on track to see a record number of store closures in 2025.
According to the Centre for Retail Research, an estimated 17,349 stores are expected to shut their doors this year, surpassing levels recorded in 2022. The rise in business rates under the current government – including higher National Insurance contributions and an increase in the minimum wage – has emerged as a core concern for retailers. Added to this is intensifying competition from digital-first, low-cost players such as Shein and Boohoo.
While several mid-market fashion retailers are actively responding to these challenges, others remain in recovery — and some have already exited the market. The following offers a snapshot of how UK retailers are faring amid ongoing pressures. New Look
New Look's journey in recent years has been a one of twists and turns. The retailer filed for a Company Voluntary Arrangement (CVA) in 2018 amid declining performance, secured a capital raise in the following year and, in 2020, found itself at risk of administration in the wake of the pandemic. Despite refinancing schemes, digital innovations and investments into specific retail networks, trouble has continued to follow New Look into the present year, during which reports have emerged of accelerated store closures and job losses.
By February, the retailer confirmed the liquidation of its Irish business, with 26 stores in the region set to close. This already followed the closure of 12 stores across England, Scotland and Wales earlier in the year, prompted by changes to business rates in the UK, including an increase on National Insurance. The latest speculation is that New Look could be eyeing a sale of the business, with a report in June suggesting the retailer had appointed advisors to review strategic options. River Island
In June, Sky News reported that River Island was drawing up a rescue strategy, the details of which became clearer later in the month, when the retailer confirmed plans to close 33 of its 230 UK stores. Rent reductions have also been proposed across 71 further locations, subject to a creditor vote scheduled for August 4, with a court decision to follow later.
In its latest financial report, River Island posted a loss of 33.2 million pounds in 2023, following a 19 percent drop in sales. In the filing, the company cited 'pressures of a highly competitive and changing retail environment combined with increased economic uncertainty' as key business risks. Supply chain disruptions and labour price increases were also noted. Claire's
For Claire's, 2023 was a year that showed promise. After filing for bankruptcy in 2018, the teen-focused accessories retailer seemed to be getting back on its feet, refreshing its brand identity, partnering with large-scale retailers on concessions and committing to new stores in key regions. Despite its efforts, the UK arm of Claire's fell into the red, according to financials for the year ended March 2024, racking up 25 million pounds in losses. Now, in the current year, its future is uncertain.
In late June, reports began circulating that Claire's was eyeing a sale of its store networks in North America and Europe. The company, currently owned by a consortium of investment firms, is facing a 480 million dollar loan repayment, due in December 2026, which has been cited as the reason for the alleged review. Later in July, additional reports hinted at the possibility of a major geographical break up of its business. While in the US, the retailer was said to be mulling a Chapter 11 filing, in the UK, advisors were believed to have been appointed to oversee a rescue plan. Seraphine
While solely operating via an online presence, Seraphine has attracted the attention of acquisition-hungry British retail giants, which have reportedly already begun circling the maternity wear brand shortly after its descent into administration. Next and Frasers Group are believed to be among the suitors considering a rescue of the label, which had cited 'trading challenges' from 'fragile consumer confidence' as the cause of its downfall. Quiz
Quiz had already initiated a restructuring of its business in 2020, however, despite marginal signs of improvement over the years that followed – with efforts spanning a strategic review to a change in leadership – the retailer was ultimately unable to climb back on the horse. Warning signs began mounting towards the end of 2023, and by December 2024, the company was preparing to delist from AIM and had called in advisors.
In February 2025, consultancy firm Teneo was ultimately appointed to oversee the administration of Zandra Retail Limited, Quiz's wholly-owned subsidiary operating its standalone UK and Irish retail stores. While 23 'loss-making' sites were to close, 42 stores, as well as brand and online operations, were saved by Orion Retail Limited, the firm of Quiz's founding family, which agreed to acquire certain assets of Zandra. Now moving forward as a private company with a leaner structure, Quiz continues to operate online, via concessions and internationally, with all such divisions remaining unaffected by the administration. Poundland
Budget retailer Poundland had become a sore spot for its former owner Pepco Group. So much so that the Polish retail giant ultimately offloaded the company onto Laura Ashley's former owner, Gordon Brothers. Days after the firm's acquisition, Poundland confirmed the closure of up to 150 stores as part of a court-sanctioned restructuring, with 650 to 700 UK stores expected to be retained. Further shifts under Gordon Brothers' 80 million pound proposed turnaround plan include the whittling down of its distribution centre network and a refocus on clothing and general merchandise.
The plan is currently subject to court approval and only impacts creditors in the UK. Poundland's operations in the Republic of Ireland and Isle of Man, where it trades under Dealz, are covered by the turnaround, nor are its trade suppliers in the UK or ROI. A court timetable is expected to conclude in late summer. Beales
Storied department store chain Beales had struggled to recover after falling into administration in January 2020. Shortly after, it closed 22 of its remaining 23 branches, with only one, its location in Poole, remaining under the guidance of New Start 2020 Limited. In 2021, additional stores in Peterborough and Southport were also reintroduced, however, these locations ultimately closed and, by September 2024, its Poole store was the last standing. The lifespan of this site was also not to be much longer. It eventually closed in May 2025, ending Beales' 140 years of trading. Select Fashion
Select Fashion entered its second administration since 2019 earlier this year, citing the cost-of-living crisis, wage pressure and tax increases as the primary causes. The latest filing came shortly after the company filed for a CVA yet, as difficulties escalated, it was forced to appoint administrators to assess all options for the business. As a result, the company closed 35 of its 83 stores, with those remaining reportedly still operationally as the firm assesses the situation. Employees at the shuttered stores were said to have been left without pay, with those impacted advised to apply for the government's Redundancy Payment Scheme. Following store closures, a winding up procedure was reportedly triggered in March 2025. The Original Factory Shop
The Original Factory Shop (TOFS) slipped into a loss in 2023 and, after struggling to regain ground, was put up for sale by its former owner Duke Street. Private equity firm Modella Capital stepped in to acquire the company's 180 stores and, weeks later, enacted a restructuring plan under newly appointed advisors Interpath.
In April, it was announced that the retailer had launched a CVA, with plans to renegotiate the rents of around 88 of its locations. Such plans were then confirmed in June, with closures confirmed for branches in Pembrokeshire, Perth, Dorset and Cumbria, among other locations, many of which shuttered in July. Winfields Outdoors
Winfields Outdoors' financial deterioration seemingly began in 2023, when it swung to a pre-tax loss of one million pounds as revenue dropped nearly 9 percent. Little was shared about the company's efforts to turn such performance around, however, in March 2025, it filed a Notice of Intention to Appoint Administrators, formally signalling financial challenges.
Winfields moved to close all of its eight stores before entering administration under Cowgill in April. Its website later displayed the message that it had ceased trading as of April 3, however, the company found itself being accused of cancelling or not fulfilling customer orders, or delaying refunds.