Fashion chain 'reconsidering Stock Market flotation plans'

Directors of the clothing chain are due to meet tomorrow to talk about reviving the 650 m flotation, according to the Sunday Times.

If they decide to press ahead with it, it is thought New Look could list as early as June this year.

The group cancelled its plans to list on the stock exchange last month, blaming the decision on the recent stock market volatility.

It is the second time in two years that it has abandoned plans for an initial public offering.

But City sources said the listing was always postponed, rather than cancelled completely.

And New Look, which is owned by buy-out firms Permira and Apax Partners, stressed at the time that the move did not signal that it was binning flotation plans altogether, adding that it would re-evaluate its options as market conditions improved.

No one from New look could be contacted for comment on the report.

New Look, which has 1,010 stores, including 601 in the UK, has enjoyed strong trading despite the recent recession, ringing up sales of more than 1.3bn in its most recent financial year.

It recently reported a strong Christmas trading period, with like-for-like sales up 14.4 per cent in the 14 weeks to January 2, on the back of a strong performance by its international arm, and the opening of another 25 UK stores since the end of March last year.

The group had hoped to raise around 650m in its stock market listing, and was planning to use the proceeds to pay down its 1.1bn debt and position it for further growth.

But it is understood that investors were concerned that the group was trying to list at too high a price and with too much debt.

Weymouth-based New Look was founded in 1969 by Tom Singh, and was taken private in 2004 by Apax and Permira for 700m, with Mr Singh retaining a stake.

Since then its new owners have invested around 450m into the business.