New Look fashions £30m cash call to fund digital growth plan

The owners of New Look, the high street fashion chain, are ploughing £30m of fresh equity into the business as they seek to accelerate its digital transformation.

Sky News has learnt that the clothing retailer will announce this week that its shareholders - Alcentra and Brait - have provided the funding as they seek to capture a bigger slice of Britain's £4.3bn womenswear market.

Insiders said the funding would be announced in a statement on Thursday.

New Look operates approximately 340 stores and employs about 10,000 people across the UK.

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It is the country's second-largest womenswear retailer in the crucial 18-to-44 year-old age group, and has been owned by its current shareholders since October 2020.

The new capital from Alcentra and Brait will be earmarked to optimise customers' online experience by investing heavily in New Look's technology and systems.

Last year, the chain reported sales of £769m, with an improvement in gross margins and a statutory loss before tax of £21.7m - down from £88m the previous year.

Like most high street retailers, it endured a torrid Covid-19 and engaged in a formal financial restructuring through a company voluntary arrangement.

In the autumn of 2023, it completed a £100m refinancing deal with Blazehill Capital and Wells Fargo.

Responding to an enquiry from Sky News, New Look chief executive Helen Connolly said: "Our goal is to be the number one online destination for feel-good fashion, powered by our loyal customer base and proven digital model.

"This new capital injection means we can ramp up our digital operations, enhance customer service, and drive growth and achieve our goal of £1bn online demand by 2030.

"It will allow us to get even closer to our growing customer base, giving them more of what they want: trend-led, high-quality fashion and a seamless shopping experience."