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A major UK high street fashion chain with more than 300 stores could soon be put up for sale after the owner called in advisors.
New Look is set to undergo a strategic review after the controversial move in recent days – and it could see the beloved clothing brand change hands.
The firm, which has nearly 340 stores and around 10,000 employees across the UK, has been owned by its current shareholders Alcentra and Brait since October 2020.
But they have now appointed investment bank Rothschild to advise them and New Look about a possible shake-up, according to Sky News.
It comes after multiple investors have put themselves forward unsolicited in recent times to take over the fashion brand.
The clothing company makes for an attractive asset, as Britain’s second most popular womenswear retailer with 18-to-44-year-olds, ahead of Shein and Asos, according to market intelligence firm Kantar.
And it has just received an injection of £30million back in April to fund its digital transformation, with around 40 per cent of sales now made via digital channels.
New Look also hit sales of £769million last year, seeing an improvement in its gross margins.
A major UK high street fashion chain with more than 300 stores could soon be put up for sale after the owner called in advisors. Pictured: File photo
New Look (pictured, file photo) is set to undergo a strategic review after the controversial move in recent days – and it could see the beloved clothing brand change hands
The firm (pictured, file photo), which has nearly 340 stores and around 10,000 employees across the UK, has been owned by its current shareholders Alcentra and Brait since October 2020
The brand also saw a massively reduced statutory loss before tax of £21.7million, compared to the previous year’s £88million.
But like many high street chains, the business suffered a huge hit during the Covid pandemic.
It was hugely restructured under a company voluntary arrangement – meaning though it was insolvent, it could keep trading while paying back its debts.
A £100million refinancing deal was then signed in autumn 2023, with lender Blazehill Capital and financial services firm Wells Fargo.
A New Look spokesperson previously declined to comment on Rothschild having been appointed.
But they did say: ‘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.’
It is just the latest blow to the British high street after a fellow nationwide fashion chain was left similarly imperilled.
It is just the latest blow to the British high street after fellow nationwide fashion chain River Island (pictured, file photo) was left similarly imperilled
River Island recently revealed the full list of 33 stores set to be axed under sweeping plans which could put thousands of jobs on the line.
The embattled retailer unveiled back in June the radical restructuring plan in a bid to reverse recent losses due to a slump in trading.
Bosses blamed the closures on the ‘migration of shoppers from the High Street to online’ and higher costs to run stores.
The family-owned retailer confirmed it is proposing to close 33 of its 230 stores by January next year as a result.
Branches across the UK will be axed, including those in Gloucester, Brighton, and Poole, retail site Drapers has reported.
Other branches set to be axed include outlets in Leeds, Grimsby and Perth.
A further 71 stores are also at risk depending on talks with landlords in order to secure improved rental deals.
New Look has been approached for comment.