New Look owners line up Rothschild as high street chain prepares for possible sale
The owners of New Look have appointed Rothschild to oversee a strategic review that could see the high street fashion chain change hands next year.
Alcentra and Brait, which have controlled the retailer since 2020, tapped the investment bank after receiving unsolicited approaches from potential buyers, Sky News reported.
No timeline has been set for the process.
New Look, which operates nearly 340 UK stores and employs around 10,000 staff, is the country’s second-largest womenswear retailer in the 18–44 age group.
The business has undergone repeated restructuring in recent years, including a £100m refinancing in 2023 and a £30m equity injection earlier this year to accelerate its digital transformation.
Despite those challenges, management insists the business is trading strongly, citing a strong summer season and online market share gains.
Roughly 40 per cent of sales now come through digital channels, with Kantar data showing New Look has overtaken Shein and Asos among younger online shoppers.
Closing shop
Still, the retailer’s footprint has been shrinking. It has exited Ireland entirely, shuttering 26 stores, and closed more than a dozen UK outlets this year including branches in Birmingham, Preston, and Neath.
A quarter of its 364 remaining UK shops are thought to be at risk as leases expire.
The wider retail sector remains under pressure.
Footfall is still below pre-Covid levels, while the British Retail Consortium warns costs could rise by £7bn across the industry next year through higher wages, packaging levies and tax increases.
The Centre for Retail Research predicts more than 200,000 retail jobs could disappear in 2025.
A New Look spokesperson said: “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.”