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		</div><p><a href="http://londonglossy.com/wp-content/uploads/2011/02/new-look-sales-drop-halves-value.jpg"><img class="alignnone size-full" title="New Look's private equity owners have cut the value of their stake in the retailer" src="http://londonglossy.com/wp-content/uploads/2011/02/min-new-look-sales-drop-halves-value.jpg" alt="New Look's private equity owners have cut the value of their stake in the retailer"/></a></p>
<p>New Look&#8217;s private equity owners have slashed the value of their stake in the retail chain after tough high street conditions caused a fall in sales, according to figures.</p>
<p>Investment group SVG Capital &#8211; an investor in New Look through buyout group Permira, which owns a 27.7% stake in the retailer &#8211; revealed it has almost halved the value of its holding in the fashion group.</p>
<p>Full-year results from SVG showed it cut the value of its investment in New Look by 47%, to £13.5 million at the end of last year from £25.7 million a year earlier.</p>
<p>The blow comes after New Look revealed falling sales over Christmas and the January sales, with a 9.1% like-for-like drop in the UK during the 15 weeks to January 2011.</p>
<p>Clothing retailers were hit across the board as December&#8217;s snow chaos compounded already tough consumer conditions.</p>
<p>SVG, which invests directly in Permira funds, said New Look suffered from the &#8220;worsening retail environment towards the end of 2010 and the adverse weather conditions during the Christmas period&#8221;.</p>
<p>&#8220;A decline in like-for-like sales, a higher promotional mix and stock clearances have driven a decline in the company&#8217;s earnings and its value has been written down by £12.2 million,&#8221; it added.</p>
<p>New Look abandoned plans to float on the stock exchange in February, blaming the U-turn on turmoil in financial markets.</p>
<p>It had hoped to raise £650 million through the aborted listing, which would have valued the firm at around £1.7 billion.</p>
<p>It has suffered a spate of pulled deals in recent years, having abandoned plans to float three years ago after a lukewarm response from investors, while a £2 billion sale of the business also failed when the company was unable to agree a price with potential suitors.</p>
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