New Look receives a sound offer for Mim

British fashion retailer New Look has received an offer for its loss-making French unit Mim. Chief Executive Anders Kristiansen declined to name the suitor for the Mim business, but said it was an Asian group that already operates in Europe, though not in retail. "We're making good progress,

I think it will happen," Krisitiansen said to reporters after presenting the company´s first-quarter sales, declining however to say what the non-binding offer is worth.

In this vein, The ‘Financial Times’ has Asia Global as its main bid for the mysterious tender. As reported by the journal, this alleged interest in Mim would underline Asian demand for European brands.

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t is noteworthy New Look was under the limelight in July after reports broke on potential conversations with Asia Global for the potential sale of its French loss-making label.

Is Asia Global the anonymous tender for Mim?

Earlier this summer, in June, New Look dropped for the first time its plans to sell Mim as France is not a country it plans to focus on.

In a statement issued on July, 11 and quoted by Sky News, the fashion retailer told to its investors, lenders and other stakeholders that “New Look confirms that it has received an indicative offer from Asia Global from Mim, its standalone French retail business, and has entered into a period of exclusive discussions with them.”

“Negotiations are at an early stage and there can be no certainty that a transaction will be concluded. A further announcement will be made in due course as appropriate,” concluded New Look at the time.

The apparel group, owned by private equity groups Apax and Permira as well as founder Tom Singh, has reported first-quarter sales and earnings that surpassed its own expectations. Better-than-expected results for the period were mainly due to warm weather and an exceptional welcome to the label kimonos. "We have had a pleasing start to the second quarter," the CEO of New Look said, noting the benefit of good weather.

Group’s revenue rose 8.1 percent to 392.5 million pounds in the 13 weeks to June 28, with sales at stores open over a year up 8.9 percent. UK like-for-like sales rose 11.6 percent, while e-commerce sales jumped 39.2 percent. Underlying earnings rose 18.8 percent to 59.4 million pounds.