New Look ponders market listing

New Look ponders market listing
Fashion chain New Look is considering a £1.7 billion stock market flotation, it has been reported.
The group, which is owned by private equity firms Permira and Apax, as well as its founder Tom Singh, could list on the stock market during the first quarter of next year, according to the Sunday Telegraph.
Investment banks are said to be lining up to handle the flotation, with Merrill Lynch, Goldman Sachs, Citigroup and Credit Suisse all thought to be interested.
It is understood that the company is also looking for a new chairman with City experience to handle the listing, with current chairman Phil Wrigley expected to leave the group.



The possible flotation comes just over two years after the group abandoned plans to list on the stock market after a lukewarm response from investors, while a £2 billion 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 and Permira for £700 million, with Mr Singh retaining a 22% stake.
Since then its new owners have invested more than £400 million in the business, although it currently has a £1.1 billion debt.
New Look is one of the few retailers to be benefiting from the economic downturn, as cash-strapped consumers look for value for money.
Earlier this year the group reported a 10% rise in annual earnings, claiming more than a third of British women and girls had bought an item from its womenswear ranges during the year to March 28.
Underlying earnings for the year grew to £217.6 million, while like-for-like sales in the UK and Republic of Ireland were up 1.4%, compared to a 3.4% fall the previous year.
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