New Look boss Anders Kristiansen said he was right to hold off any float of the fashion chain as he suggested the stock market has had enough of retail listings.
He told the Standard: “I think we were right to wait. The market was overheated as everyone was trying to get to list. But a number of companies have either pulled their float or shares haven’t been very good.”
Fat Face pulled its float, while others, including AO, B&M Bargains, Boohoo.com and Pets at Home, went public.
His comments come as New Look saw sales rise 3% to £1.53bn but sank to a £55 million pre-tax loss following a £64 million writedown of its struggling French business, Mim. It follows discount online business MandM Direct becoming the latest retailer to look at cashing in on investors’ appetite, unveiling today a £170 million flotation.
New Look’s owners, Apax and Permira, want to cash in, but Kristiansen insisted more work is needed on the business.
The New Look boss said: “The stores had been underinvested and shabby, and customers were not given enough choice.”
But 119 store refits helped like-for-likes in the UK rise 3% in the year to the end of March, while the introduction of click and collect and new floor space added to profits.
