The house owners of New Look, the excessive avenue trend retailer, have picked bankers to supervise a strategic assessment which is predicted to see the corporate change palms subsequent 12 months.
Sky Information has learnt that Rothschild has been appointed in latest days to advise New Look and its shareholders on a possible exit.
The funding financial institution’s appointment follows a variety of unsolicited approaches for the enterprise from unidentified suitors.
New Look, which trades from virtually 340 shops and employs about 10,000 individuals throughout the UK, is the nation’s second-largest womenswear retailer within the 18-to-44 year-old age group.
It has been owned by its present shareholders – Alcentra and Brait – since October 2020.
In April, Sky Information reported that the buyers had been injecting £30m of contemporary fairness into the enterprise to assist its digital transformation.
Final 12 months, the chain reported gross sales of £769m, with an enchancment in gross margins and a statutory loss earlier than tax of £21.7m – down from £88m the earlier 12 months.
Like most excessive avenue retailers, it endured a torrid Covid-19 and engaged in a proper monetary restructuring via an organization voluntary association.
Within the autumn of 2023, it accomplished a £100m refinancing cope with Blazehill Capital and Wells Fargo.
A spokesperson for New Look declined to remark particularly on the appointment of Rothschild, however stated: “Administration are targeted on working the enterprise and executing the technique for long-term progress.
“The corporate is performing properly, with sturdy momentum pushed by a profitable summer season buying and selling interval and notable on-line market share good points.”
Roughly 40% of New Look’s gross sales at the moment are generated via digital channels, whereas latest information from the market intelligence agency Kantar confirmed it had moved into second place within the on-line 18-44 class, overtaking Shein and ASOS.
