UK - Adverse rumours surround potential tertiary buyout of New Look

Reports that interest in value fashion retailer New Look is lacklustre continue to dog the auction process being run by Merrill Lynch. Apax and Permira, the current owners of New Look, had considered a float of the business but decided instead to sell it via an auction earlier this year. The backers were hoping it would fetch up to £2bn but reports suggest that there have only been two parties interested and they are offering in the region of £1.7bn. Warburg Pincus are bidding with TPG against BC Partners. It has also been suggested that after failing to win the mandate to sell New Look, Goldman Sachs had set up a consortium to acquire the company with Dubai-based Landmark and hedge funds, but the investment bank has denied this. Most recently, press reports have stated that should New Look not attract a high enough price, the investors will recapitalise it instead. This would represent a third refinancing in three years.