The owners of fashion retailer New Look have reportedly selected bankers to conduct a strategic review of the company. According to Sky News, Rothschild has been chosen to provide advice to New Look and its shareholders, potentially leading to the sale of the high street chain in the future.
Although no official announcement has been made by New Look, the company is operating normally. With nearly 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 refrained from commenting on the appointment of Rothschild but emphasized the company’s focus on managing the business and implementing strategies for long-term growth. The company’s recent performance has been positive, with significant momentum from successful summer trading and notable gains in online market share.
Recent store closures by New Look, including the shutdown of 13 stores this year, align with earlier reports of potential business reviews. Notably, the closure of the Neath branch in Wales on August 6 and the upcoming closure of a store in Scarborough, North Yorkshire on September 17 are part of these actions. In addition, New Look exited the Republic of Ireland in February, resulting in the closure of 26 stores.
Amid speculation about future store closures due to increased costs, New Look remains vigilant. Reports suggest that a significant number of stores may be at risk of closure, with a quarter of the current UK stores potentially facing this outcome. However, New Look has not officially confirmed these reports.
The company’s strategic moves indicate a proactive approach to adapting to market challenges and ensuring long-term sustainability.
