The high street chain is reportedly being ‘auctioned off’
The Potteries Centre in Hanley(Image: Pete Stonier / Stoke Sentinel)
A major fashion chain with a branch inside Hanley’s Potteries Centre is reportedly set to employ investment bankers to conduct a strategic review. It is expected that the move will initiate an auction of New Look, which also has stores in Newcastle-under-Lyme, Stafford and Crewe.
Sky News reported that New Look’s owners, led by investment firm Alcentra, have begun discussions with banks about advising on a process to occur over the next 12 months. An appointment, following unsolicited approaches for the business, is expected to be made shortly, the TV channel said.
The news comes after it was confirmed that River Island would be closing its Potteries Centre branch next January in another blow for the city centre.
New Look, which operates from roughly 340 stores and employs around 10,000 people across the UK, is the nation’s second-largest womenswear retailer in the 18 to 44 year old age bracket. It has been owned by its current shareholders – Alcentra and Brait – since October 2020.
In April, Sky News reported that the investors were injecting £30m of fresh equity into the business to aid its digital transformation. Last year, the chain reported sales of £769m, with an improvement in gross margins and a statutory loss before tax of £21.7m – down from £88m the previous year. Like most high street retailers, it endured a challenging COVID-19 period and engaged in a formal financial restructuring through a company voluntary arrangement.
In the autumn of 2023, it completed a £100m refinancing deal with Blazehill Capital and Wells Fargo.
A spokesperson for New Look said the company did not “comment on rumour and speculation”. They said: “Management are focused on running the company and executing the strategy for long-term growth. The company is trading well and has supportive shareholders.”
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