Billionaire snaps up New Look for £780m

THE two private equity firms behind New Look have finally offloaded the heavily indebted fashion group for £780m after 11 chequered years.

Permira and Apax have sold the chain of 800 stores to another private equity firm – Brait – linked to South African billionaire Christo Wiese after abandoning their plans to float it on the London Stock Exchange in 2010.

During their tenure New Look found it difficult to stand out in a crowded marketplace and its owners binned successive management teams.

They loaded it with debt, which still stands at £1bn, and which some analysts believe was a factor behind its discounted price tag.

Veteran retail analyst Nick Bubb said: ‘The long-suffering private equity investors... were desperate to sell... and an IPO never looked a runner given New Look’s very chequered UK history.

‘Christo Wiese has probably been able to drive quite a hard bargain.’

Founded in 1969, New Look was started as a single store and has become the UK’s second-largest value retailer for women’s clothing and accessories.

It has more than 800 stores in 21 countries, including 19 in China and 569 in the UK. More recently the firm has gone through a transformation under chief executive Anders Kristiansen who has focused on expanding in China and taking the brand online. He will continue to lead the firm.

Brait will take a 90pc stake in the business with the remainder shared among the management and founder Tom Singh.

New Look has doubled operating profit in recent years and established strong growth in France, Germany and Poland.

Kristiansen said: ‘We looked at all options and had many and long conversations. Brait is a long-term investor and buys into what we are trying to do with the business, especially with China and e-commerce. They are the perfect owners.’

John Gnodde, the chief executive of Brait said: ‘New Look is... a market leading brand, with a strong track record of double digit operating profit growth... international reach and the potential to grow rapidly in a number of geographic markets.’

Brait is listed on the Johannesburg Stock Exchange and recently bought Virgin Active, and has a stake in Iceland Foods.