New Look mulls sale of fashion chain – report

​New Look’s owners are reportedly lining up bankers to handle a sale of the business in the months ahead as they review their options.

The value-focused chain is the second-largest womenswear retailer in the UK for the key 18 to 44-year-old age group and has around 340 stores. 

Its owners — investment firms Alcentra and Brait — along with the business’s management are said to be looking at their options with an auction in the coming months seen as the most likely option, according to a Sky News report.

It comes after an announcement this spring that the owners were pumping £30 million into the business to “supercharge digital growth”.

The company is soon expected to appoint bankers to run an auction process that will happen within the next 12 months. This follows unsolicited approaches for the firm.

Its current owners have been in control since October 2020 with the firm having had a tough time during the pandemic and having launched a company voluntary arrangement (CVA).

In its latest financial year, the business reported sales falling almost 9% to £769 million due to store closures and tough trading conditions and a statutory pre-tax loss of £21.7 million, although this was down from an £88 million loss in the previous year. It came as the company saw its gross margins improving.

New Look hasn’t commented on the Sky News report and said its management team is “focused on running the company and executing the strategy for long-term growth. The company is trading well and has supportive shareholders”.