New Look stores in Derbyshire could be under threat as retailer looks to save on rent costs

The fashion retailer is looking at plans to close 60 branches across the UK, it's reported.

The struggling chain is understood to be considering a deal to restructure its financial obligations to creditors so it can continue trading.

Sources told Sky News the South African-owned company, which has 600 stores nationwide, is writing up proposals for a Company Voluntary Arrangement (CVA).

The process is a legally binding agreement with the firm's creditors to allow a proportion of debt to be paid back over a fixed period of time.

A decision about whether to proceed is expected to be taken in the coming weeks but is reportedly one of a number of options being discussed.

It would require the consent of bondholders, while landlords and other creditors would be asked to vote on the plan later this year.

If it goes ahead, will see roughly 10 per cent of New Look stores shut down with sizeable rent reductions sought at many of the remaining branches.

Earlier this week, it was reported that the firm had ditched plans to move to a posh new King's Cross HQ in London - instead allowing Google to take its spot.