Founder Tom Singh back in charge at New Look

Tom Singh took back management control of his New Look fashion empire today, ousting the chief executive and chairman and moving himself into the top job.

Singh, who started New Look with a single store in 1969, is thought to have become exasperated with events at the business, which saw a £1.7 billion stockmarket flotation collapse last year.

Chief executive Carl McPhail and chairman John Gildersleeve are leaving with immediate effect.

Neither man's pay has ever been disclosed, but it would be normal in such circumstances for them to receive at least a year's money in compensation.

New Look has issued three profit warnings since the float was pulled in February 2010. It blamed stock market conditions for dashing its plans, but fund managers said a bigger problem was the £1 billion in debt carried by the business.

Singh's move will spark speculation he wants to start work again on an initial public offering.

The business was bought by Permira and Apax in 2004, though Singh retains a quarter of the ownership. Permira recently slashed the value at which it holds New Look on its books.

McPhail was thanked in a company statement for "his significant contribution to the business".

Gildersleeve had already indicated his intention to step down, said the company.

Singh becomes interim executive chairman while a search for new leadership begins.

Permira and Apax, which have 27.7% each, back Singh's move.