Private equity investment firm, Clayton Dubilier & Rice (CD&R), is reportedly talking with Chinese backers about a joint bid for New Look.

CD&R, which employs former Tesco boss Sir Terry Leahy as an advisor, held initial discussions with Chinese investment firm CDH, concerning a joint offer for the British high street fashion retailer. Discussions between the two firms have not yet resulted in a final agreement to bid, but they underscore the growing influence of Chinese investors in deals involving major Western brands.

In New Look's case, the potential involvement of CDH reflects the future importance of China as a market for the chain, whose chief executive has set a target of 70 stores in the country by the end of the financial year.

New Look, the Uk’s second-biggest womenswear retailer, operates from over 800 stores in 21 countries around the world.