Fashion chain backs founder's bid

Mr Singh is expected to maintain an active role in running New Look.

Women's fashion retailer New Look has backed a bid from founder Tom Singh to take the firm private.

The 348 pence-a-share offer values the discount company, founded by Mr Singh in 1969 from a single shop in west London, at £700m ($1.32bn).

Taking New Look private would see the company follow in the footsteps of other UK retailers, including Top Shop owner Arcadia and Selfridges.

New Look was floated in June 1998 at 170p a share.

Challenging times

The company is Britain's third largest womenswear retailer by market share, operating 500 outlets in the UK and 191 Mim stores in France.

However, Mr Singh's offer comes at a challenging time for the firm, which last month reported a 5.1% fall in like-for-like sales over the key Christmas period.

New Look chairman John Grieves said the proposal of 348p-a-share represented an all-time high for the company's shares.

He added: "The proposals provide shareholders with certainty of value at a level which reflects the quality of the New Look business, the value of its brands and the position it occupies in the retail sector."

Mr Singh is expected to maintain an active role in running the business.