The parent company of New Look has reportedly selected financial advisors to conduct a strategic evaluation of the popular fashion chain. According to reports from Sky News, Rothschild has been enlisted to guide New Look and its stakeholders through a potential sale process that may lead to the divestment of the high street brand in the future.
While there has been no official confirmation from New Look regarding this development, the company is operating as usual. With close to 340 stores and approximately 10,000 employees in the UK, New Look has been under the ownership of Alcentra and Brait since October 2020.
A spokesperson for New Look declined to comment on the appointment of Rothschild but emphasized that the company is focused on managing its operations and implementing strategies for long-term growth. The company’s recent performance has shown positive momentum, with successful summer trading and significant gains in online market share.
Earlier this year, Sky News revealed that Alcentra and Brait had engaged investment bankers to explore a business review. This news coincided with New Look’s announcement of the closure, or impending closure, of 13 stores throughout the year. Notable closures include the Neath branch in Wales on August 6 and the upcoming shutdown of a store in Scarborough, North Yorkshire, on September 17. Additionally, New Look exited the Republic of Ireland in February, leading to the closure of 26 stores.
Reports from The Times indicated that New Look was considering expediting future store closures as leases expire due to increased costs associated with minimum wage hikes and higher National Insurance rates for employers. The report suggested that about a quarter of New Look’s UK stores could be at risk of closure, potentially affecting around 91 locations out of the total 364 stores in the UK.
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