New Look is to hire investment bankers to undertake a strategic review which is expected to trigger an auction of the high street fashion chain.
Sky News has learnt that New Look's owners, who are led by the investment firm Alcentra, have opened talks with banks about advising on a process to take place during the next 12 months.
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An appointment, which follows unsolicited approaches for the business, is expected to be made in the near future.
New Look, which trades from approximately 340 stores and employs about 10,000 people across the UK, is the country's second-largest womenswear retailer in the 18 to 44-year-old age group.
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 torrid COVID-19 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".
"Management are focused on running the company and executing the strategy for long-term growth.
"The company is trading well and has supportive shareholders."
(c) Sky News 2025: New Look owners line up bankers to fashion high street exit
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