US distressed debt investors are seeking to acquire bonds of embattled fashion retailer New Look.
Anchorage Capital and HPS Investment Partners are interested in purchasing part of New Look’s £1.2bn debt, the Sunday Times reported.
Their interest follows a 60% plunge in New Look’s profits in its first quarter.
The retailer’s quarterly profit fall, reported earlier this month, was attributed to a “challenging UK sales performance and investment in strategic initiatives”.
Chief executive Anders Kristiansen said then: “As expected, the UK market has remained difficult, which has resulted in a disappointing quarter of trading.
“We have managed the business accordingly by controlling costs, tactical investment in our strategic initiatives and enhancing our product proposition.
“We remain committed to our long-term strategy of diversifying the business and reducing our dependence on the UK high street, and are confident that we will see improvements, but expect these to take time.”
Separately, it was reported that at the end of the first quarter KPMG was advising New Look on cost savings. KPMG made recommendations that were in line with New Look’s existing strategy, according to City AM.
No comment was available from Anchorage Capital, HPS Investment Partners or New Look.