Struggling retailer New Look could close 60 stores, putting 980 jobs at risk, as it becomes the latest business to fall victim to difficult conditions on the high street.

The fashion retailer has instigated a company voluntary arrangement, a form of insolvency aimed at protecting a business from going bust entirely, and is seeking approval from its lenders for a restructuring plan.

New Look said it had identified 60 out of its 593 stores in the UK to be closed, along with a further six sites that are sub-let to third parties. The plan requires the company to make up to 980 staff redundant, out of its 15,300 UK employees, although it will attempt to redeploy people “where possible”.

The plan also includes a rent reduction and new lease terms for 393 of its stores.

New Look, which is owned by South Africa's Brait, has asked its creditors to approve the proposal by March 21 and all stores will remain open until then. Deloitte is acting as nominee to the CVA.