Brait bets on New Look revival
Group says turnaround plan is in place at UK retailer to solve problems caused by loss of broader market appeal
After marking down the value of its investment in New Look to zero, Brait is focusing on a turnaround plan for the British fashion retailer, which is in place but is not yet apparent. The investment holding company said on Wednesday that New Look’s problems, caused by targeting the “young and edgy” segment of the market and losing its broader appeal, coupled with reduced flexibility and ability to respond to new trends, had cost it sales, with revenue falling 4.5% in sterling terms. Like-for-like sales fell 8.6%. Third-party e-commerce sales increased 17%, while sales made on New Look’s own website contracted 7.6%. Last week, Brait marked down New Look’s net asset value (nav) from R18.7bn to nil as it waits for the turnaround strategy to bear fruit. “Part of the recovery plan includes a broader appeal product at good value,” said a spokesman for Brait, who declined to be named in line with company policy, after the release of its results for the six months to September. “New Look re...
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