Fashion giant New Look lists stocks

Feb 3 2010 by Iain Laing, The Journal

FAST-FASHION retailer New Look has announced plans to list on the London Stock Exchange in a move set to raise around £650m.

New Look, which has 1,010 stores, including 601 in the UK, said the proceeds will be used to pay down debt and position the company for further growth.

It generated sales of more than £1.3bn in its most recent financial year.

Two years ago the group abandoned plans to float after a lukewarm response from investors, while a £2bn sale of the business also failed when the company was unable to agree a price with potential suitors.

Weymouth-based New Look was founded in 1969 by Tom Singh, and was taken private in 2004 by Apax Partners and Permira for £700m, with Mr Singh retaining a stake.

Since then its new owners have invested around £450m in the business, although it currently has an estimated £1.1bn debt.

As well as the offering of £650m of shares, New Look said there was the possibility that existing shareholders will sell some stock.

Chief executive Carl McPhail said: “Today’s announcement is the latest exciting stage in our development and we look forward to growing our business, both in the UK and internationally.”