Fashion chain New Look is reported to be preparing to meet property owners amid plans for rent reductions and store closures as it battles massive debts.

The fashion chain, once based in Weymouth and now owned by South Africa’s Brait, is in the middle of a turnaround plan after bringing back its old management to revive the business following a steep fall in sales and mounting losses.

It has around 600 stores nationwide, with eight in Dorset, including Weymouth, Dorchester and Bridport, although it is not known if any of these are earmarked for closure.

New Look’s very first store was set up in Weymouth in 1971 by founder Tom Singh.

The town was home to the retailers distribution centre and offices, making it one of the town’s biggest employers.

Its distribution centre moved to Newcastle-under-Lyme in 2005 and the creative team is now based in London.

However, its administrative offices are still based in Mercery Road, employing dozens of people.

The company is understood to have written to leading landlords to say that finance director Richard Collyer would be asking for meetings in the coming days.

New Look is the latest high-street retailer to come under pressure from the rise in online and discount rivals, increased labour costs and poor consumer confidence.

It is also believed to have been considering a company voluntary arrangement (CVA)–a legally binding agreement with the firm’s creditors to allow a proportion of the debt to be paid back over a fixed period of time.

New Look posted a pre-tax loss of £123.5 million in the three quarters to December, while sales slumped 6.3 per cent to £1 billion.

Like-for-like sales in the UK plunged 10.7 per cent during the period, while online sales through New Look’s website fell 15 per cent.

Former boss Alistair McGeorge, who was parachuted into the role of executive chairman to replace Anders Kristiansen, said the poor showing reflected a challenging market and heavy discounting. He also said the company’s ranges had become “too edgy”.

New Look’s bondholders are said to support a CVA, but only on the right terms, according to the Sunday Times.

One property source is quoted as saying: “Retail CVAs have a pretty appalling record of not working.

“The only ones that have worked are ones where there’s been a proper restructuring, debt’s been written off and new equity’s been provided.”

He added that the “real problem” at New Look was its £1.1billion debt mountain.

The company declined to comment on a possible CVA.