CD&R, the private equity firm which employs former Tesco Boss Sir Terry Leahy as an advisor, is reportedly wooing Chinese backers to assemble a bid for high street fashion retailer New Look.
Clayton Dubilier & Rice (CD&R) has held initial discussions with CDH, a Chinese investment firm, concerning a joint offer for the British fast fashion chain.
It’s not clear whether Leahy is directly involved. The Tesco tycoon has been a senior adviser to CD&R for four years and is chairman of B&M Retail, the discount chain which floated on the Stock Exchange last year.
There is no definitive agreement to bid, but the talks highlight the growing influence of Chinese investors in deals related to major Western brands.
For New Look, the UK’s second-biggest womenswear retailer, the potential involvement of CDH reflects the future importance of China as a market for the chain, whose chief executive has set a target of 70 stores in the country by the end of the financial year says Sky News.
New Look operates from over 800 stores in 21 countries around the world.