New Look has entered into a share sale and purchase agreement with Main Asia, a company advised by Asia Global, to sell its struggling French business Mim.
Main Asia made the offer in July and the sale is expected to complete later this year. New Look said it expects to recover at least the value of the net assets it currently holds, but did not reveal this figure.
New Look reported in June that it made a statutory pre-tax loss of £55m in the year to March 29 compared with a pre-tax profit of £3.1m last year, due to a £64.2m impairment charge after writing down the value of Mim.
Chief executive Anders Kristiansen said: “The board is delighted to confirm the sale of Mim in such a timely manner following the strategic decision taken earlier this year to divest this business. Our focus is now squarely on the core New Look brand, expanding its presence in the UK, internationally and online.”
New Look acquired full control of Mim in June 2003, after taking a majority stake in 2000. The retailer targets a younger and more value-conscious shopper than New Look and has an average store size of just over 2,000 sq ft.