New Look needs a new look
The problem with Brait
The British value fashion retailer New Look is paying a heavy price for neglecting its target market
In 2015 Brait won an award for best private equity investment, as judged by London-based magazine EMEA Finance. This was shortly after it bought New Look. The British value fashion retailer was recorded as the largest asset in Brait’s annual financial statements, accounting for 45% of the group’s overall net asset value (NAV). Now, the £783m investment in New Look has soured, with Brait marking its value down to zero in its results for the six months to September, released last week. A spokesman for Brait says the erosion of value was due to a number of factors, including the chain’s products losing their broad appeal, reduced flexibility and speed to market, and high costs. Brait remains committed to New Look, opting to shake up its executive team and implement a turnaround strategy. "Brait cannot and does not comment on the investment or divestment decisions relating to current or potential investments," says the spokesman when asked if Brait will sell New Look.Brait’s shares hit ...
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