US hedge funds are considering buying bonds in struggling UK retailer New Look following the company’s recent loss during its first quarter.
American investors Anchorage Capital and HPS Investment Partners are among the firms eyeing New Look’s public debt, according to the Sunday Times. The retailer issued £1.2bn in bonds in 2015.
This comes after New Look reported a loss after tax of £15.2m for the quarter ending 24 June, as revenues fell more than four per cent to £338.7m.
The retailer's chief executive Anders Kristiansen blamed the disappointing results on the difficult UK market and warned of further weakness to come.
“Looking ahead, we expect the consumer economy to remain fragile and challenging market conditions to persist into 2018,” he said in the company’s results.
“We will continue to manage our business prudently and focus on providing our customers with exceptional product and real value for money."
Meanwhile, it was disclosed at the end of the first quarter that New Look was working with adviser KPMG on finding cost savings. KPMG made recommendations that were in line with New Look’s existing strategy, a source told City A.M.
Anchorage Capital did not reply to City A.M.’s request for comment.
New Look and HPS Investment Partners declined to comment.