About 980 staff face redundancy - from a 15,300-strong UK workforce - and rents at about 400 stores will be slashed.
The rescue plan still needs approval from creditors. New Look said it faced "a difficult trading environment".
Chairman Alistair McGeorge said the cuts were "tough but necessary".
The retailer - which has 593 stores in total - hopes to redeploy employees within the business where possible.