Value fashion retailer New Look is buying out the Amzallag family's minority stake in French business New Mim for£29.7 million. The deals give New Look full operational control as it accelerates plans to grow the chain to 400 stores.
Group development director Carl McPhail said: 'We had the option to buy the business in 2006, but clearly see opportunities there and want to take the business now rather than wait.
'We have been working with the Amzallags for two years on a model for the business. They have brought local market expertise and we have added range building, merchandising and supply chain expertise.'
Pending shareholder approval, a New Mim board headed by McPhail has been drawn up. He replaces Charles Amzallag as president, who will be retained on a consultancy basis.
David Amzallag will continue as managing director, while Pierre Gaillard is elevated to buying and merchandising director.
The holding company New Mim was formed in 2000 when New Look France merged with the privately owned Mim chain.
McPhail says New Mim is 'frighteningly like' New Look a decade ago, with the 'same sales, profits and challenges' and sees potential for it grow from 171 stores to a possible 400. New Look also reported a bumper year, with pre-tax profits up 36.8 per cent to£85.2 million. Group sales grew by 9.9 per cent to£643.4 million, with like for likes up 7.7 per cent.
Current trading has been hit by low-cost summer fashion ranges, but chief executive Stephen Sunnucks says higher priced autumn ranges will offer respite from mid-July.
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