The parent company of New Look has reportedly engaged financial advisors to conduct a strategic evaluation of the popular fashion brand. According to reports from Sky News, Rothschild has been selected to guide New Look and its stakeholders through a potential sale process in the future.
Although no official statements have been released by New Look, the company is operating as usual. 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.
When asked for a comment on the involvement of Rothschild, a New Look spokesperson chose not to respond directly but emphasized the company’s focus on day-to-day operations and long-term growth strategies. Recent positive performance indicators include a successful summer trading period and significant gains in online market share.
Reports surfaced earlier in the year that Alcentra and Brait had enlisted investment bankers to explore potential business reviews. This development coincides with New Look’s decision to close or already shuttered 13 stores in 2021, with recent closures in Neath, Wales, and upcoming closure in Scarborough, North Yorkshire.
The closure decisions preceded discussions of a potential sale, as New Look exited the Republic of Ireland, leading to the closure of 26 stores. News sources also revealed New Look’s consideration to streamline store operations following increased operational costs, including rising minimum wages and National Insurance rates for employers.
Speculations suggest that a significant portion of New Look’s UK stores may face closure risks, with approximately 91 sites potentially affected out of 364 total locations. Despite these reports, New Look has not officially confirmed the specific closures.