The owners of high street fashion chain New Look have appointed investment bank Rothschild to conduct a strategic review that could result in a sale.
Sky News reported that the investment bank was brought on board after the owners, Alcentra and Brait, who have been in control since 2020, received unsolicited interest from potential buyers. No specific timeline has been established for this process.
Weymouth-headquartered New Look, which operates nearly 340 º£½ÇÊÓƵ stores and employs approximately 10,000 staff, is the nation's second-largest womenswear retailer for the 18–44 age demographic.
The company has experienced numerous restructurings in recent years, including a £100m refinancing in 2023 and a £30m equity boost earlier this year to expedite its digital transformation, as reported by .
Despite these hurdles, management maintains that the business is performing well, pointing to a successful summer season and increased online market share.
Approximately 40% of sales are now generated through digital channels, with Kantar data indicating that New Look has surpassed Shein and Asos among younger online consumers.
However, the retailer's physical presence has been diminishing. It has completely withdrawn from Ireland, closing 26 stores, and has shut over a dozen º£½ÇÊÓƵ branches this year, including outlets in Birmingham, Preston, Wiltshire and Neath.
It is believed that a quarter of its remaining 364 º£½ÇÊÓƵ shops could be at risk as leases come to an end.
The broader retail sector continues to face challenges.
Footfall remains beneath pre-Covid levels, whilst the British Retail Consortium cautions that expenses could surge by £7bn throughout the sector next year due to elevated wages, packaging levies and tax rises.
The Centre for Retail Research forecasts that over 200,000 retail positions may vanish in 2025.
A New Look spokesperson commented: "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."
