New look owner in overhaul as Christo Wiese seeks to shore up holdings
JOHANNESBURG – Brait SE, owner of struggling U.K. apparel chain New Look, launched a sweeping overhaul as leading shareholder Christo Wiese seeks to salvage his investment after seeing his other retail assets plunge in value.
The investment company outlined a refinancing worth almost twice as much as its 7.1 billion-rand ($480 million) market value and said the plan could result in a sale of assets, which also include Virgin Active gyms, within three to five years. Its Johannesburg-listed shares fell as much as 14%.
Brait has been struggling to turn around New Look, which has been hit by the U.K.’s retail crisis as shoppers defect to trendier online fashion sellers like Boohoo Group Plc. The investment firm bought the chain for 780 million pounds ($1 billion) and now values it at zero. Wiese appointed a former investment banker and dealmaker as his representative to the board in September, a clear indication that he wanted change.
Source: iol.co.za
