UP to 980 jobs are being axed at embattled retailer New Look under proposals to shut 60 stores and slash rent on nearly 400 shops as part of a rescue plan.

New Look said it was looking to close nearly 10% of its 593-strong UK store estate, with a further six sites that are sub-let also due to shut as it pushes ahead with a company voluntary arrangement (CVA).

It said the closures would lead to redundancies, with up to 980 jobs out of its workforce of 15,300 under threat, although it said it would look to redeploy staff where possible.

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

The town was home to the retailer's 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.

It has eight stores in Dorset, including Weymouth, Dorchester and Bridport. None of these will close, it has been confirmed.

Its rescue plan will also see the group ask landlords to slash the rent and revise leases on 393 stores across the UK.

Alistair McGeorge, executive chairman of New Look, said: "Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability."

New Look confirmed that all stores will remain open as normal until creditors vote on the CVA proposal on March 21.

New Look cited high rental costs and challenged trading amid a "difficult retail environment" as it announced the Company Voluntary Arrangement (CVA).

A CVA allows a company to exit unprofitable branches and secure rent reductions on the remaining estate.

Under the proposal, New Look has identified 60 out of its total 593 UK stores for potential closure.

It will also includes a reduction in rental costs and revised lease terms across 393 stores.

New Look said it would attempt to redeploy those at risk of redundancy in other parts of the business.

Alistair McGeorge, executive chairman of New Look, said: "Given our challenged trading performance and over-rented UK store estate, we are having to take tough but necessary actions to reduce our fixed cost base and restore long-term profitability.

"We have held constructive discussions with our key landlords and strategic partners and will now seek creditor approval on our CVA proposal.

"A priority for us is to keep all potentially affected colleagues informed during this difficult time."

New Look, which is working with Deloitte on the restructure, said creditors will vote on whether to accept the CVA on March 21.

All stores will remain open as normal during the period of the proposal and the company's online sales channel will be completely unaffected, New Look confirmed.

Daniel Butters, partner at Deloitte, said: "The retail trading environment in the UK remains extremely challenging, driven by weaker consumer confidence, the implications of Brexit and competition from online channels.

"It is important to stress that no stores will close on day one, and employees, suppliers and business rates will continue to be paid on time and in full."