The house owners of New Look, the excessive road style retailer, have picked bankers to supervise a strategic assessment which is anticipated to see the corporate change arms subsequent 12 months.
Sky Information has learnt that Rothschild has been appointed in current days to advise New Look and its shareholders on a possible exit.
The funding financial institution’s appointment follows a lot 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 recent fairness into the enterprise to help 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 road retailers, it endured a torrid Covid-19 and engaged in a proper monetary restructuring by way of an organization voluntary association.
Within the autumn of 2023, it accomplished a £100m refinancing take care of Blazehill Capital and Wells Fargo.
A spokesperson for New Look declined to remark particularly on the appointment of Rothschild, however mentioned: “Administration are targeted on working the enterprise and executing the technique for long-term development.
“The corporate is performing nicely, with sturdy momentum pushed by a profitable summer time buying and selling interval and notable on-line market share features.”
Roughly 40% of New Look’s gross sales at the moment are generated by way of digital channels, whereas current knowledge from the market intelligence agency Kantar confirmed it had moved into second place within the on-line 18-44 class, overtaking Shein and ASOS.
