New Look bid talk masks sales slump

FASHION retailer New Look saw its sales slide by more than 5% over Christmas and the New Year, but its shares were buoyed today by news that talks are continuing over a £700m bid from founder Tom Singh.

Chief executive Stephen Sunnucks said that although sales suffered, the group held its nerve on price- cutting in December and has been rewarded with improved margins.

Sales for the seven weeks to 10 January were down 5.1% like-for-like, taking the fall for the 15- week period to 3.1%.

Singh made his approach of 348p per share in October, although New Look shares, up 1 3/4p to 314p today, have traded well below that in recent weeks on worries that the bid may not materialise.

Talks are continuing, however, and Sunnucks hopes for firm developments within the next couple of weeks.