The owners of UK fashion chain New Look are expected to proceed with an initial public offering (IPO) for the company early next year.

The stock exchange flotation may follow the appointment of a suitable bank, following a recent 'beauty parade' said to include Deutsche Bank and Goldman Sachs Group among others.

A spokesperson for Apax Partners, which owns New Look along with fellow private equity firm Permira, made no comment on the market rumours.

New Look has found success in the fast fashion market, having nearly been sold on by the private equity firms in 2007.

In June it reported a 10.2% jump in full-year earnings as financially stretched female shoppers flocked to stores.