US hedge funds are eying opportunities to buy up debt at New Look, following the retailer’s profit loss for its first quarter.
It is understood that US distressed debt investors Anchorage Capital and HPS Investment Partners have been trying to purchase part of New Look’s £1.2bn debt pile.
New Look had drafted in advisory firm KPMG to find cost savings, after what its chief executive Anders Kristiansen called “a disappointing quarter of trading”.
The company’s underlying profit slumped by 60.3% to £12.1m during its first quarter, from £30.5m during the same period last year.
It made a loss after tax of £15.2m, compared with profit after tax of £5.8m last year.
New Look and Anchorage Capital declined to comment. HPS Investment Partners could not be reached for comment at the time of writing.