New Look owners pick bankers to fashion sale process

The owners of New Look, the high street fashion retailer, have picked bankers to oversee a strategic review which is expected to see the company change hands next year.

Sky News has learnt that Rothschild has been appointed in recent days to advise New Look and its shareholders on a potential exit. The investment bank's appointment follows a number of unsolicited approaches for the business from unidentified suitors.

New Look, which trades from almost 340 stores and employs about 10,000 people across the UK, is the country's second-largest womenswear retailer in the 18-to-44 year-old age group. It has been owned by its current shareholders - Alcentra and Brait - since October 2020.

In April, Sky News reported that the investors were injecting £30m of fresh equity into the business to aid its digital transformation. Last year, the chain reported sales of £769m, with an improvement in gross margins and a statutory loss before tax of £21.7m - down from £88m the previous year.

Like most high street retailers, it endured a torrid Covid-19 and engaged in a formal financial restructuring through a company voluntary arrangement. In the autumn of 2023, it completed a £100m refinancing deal with Blazehill Capital and Wells Fargo.

A spokesperson for New Look declined to comment specifically on the appointment of Rothschild, but said: "Management are focused on running the business and executing the strategy for long-term growth. "The company is performing well, with strong momentum driven by a successful summer trading period and notable online market share gains." Roughly 40% of New Look's sales are now generated through digital channels, while recent data from the market intelligence firm Kantar showed it had moved into second place in the online 18-44 category, overtaking Shein and ASOS..