The auction of New Look, the fashion chain, collapsed last night after bidders refused to meet the £1.8bn reserve price set by its private equity owners, Apax and Permira. The Times. Daily Telegraph. Financial Times


Sources said no formal bids had been filed after interested parties, including BC Partners, the Dubai-based retailer Landmark Group, which already holds a small stake in New Look, and a consortium of Warburg Pincus and TPG said they would pay no more than about £1.7bn for the retailer.

Conditions in the debt markets that finance private equity groups are tightening following concerns about the American credit market.

New Look is also thought to have been hit by tough trading conditions, as interest rate rises begin to bite and wet weather affects high street sales.

New Look’s owners will examine alternative options and a refinancing is the most likely option , a source said.