New Look buyout highly successful

High street fashion chain New Look is back in the news this week as private-equity practitioners are expected to highlight the company as one of the biggest success stories among UK buyout deals in recent history. Since it was taken private in a £700m deal led by founder Tom Singh three years ago, its workforce has grown from 12,000 to 15,000 and capital expenditure on expanding the business has risen from £99m in March 2004 to £230m at December 2006

No formal sale process has begun and no bankers have yet been lined up to handle the disposal. The private-equity groups are thought to have placed a £2 billion valuation on New Look, but it is unclear at what level the approaches have been pitched. Insiders were also keen to stress that nothing had been ruled out and all options, including keeping the business and a float, were still possible. Designer Giles Deacon is set to unveil his collaboration with the high street company in March.