US buyout houses TPG Capital and Warburg Pincus have emerged as the front runners in the battle for UK fashion retailer New Look after hiring Citigroup, which advised the company's management when it was first taken private three years ago.

Citigroup advised New Look management when private equity firms Apax Partners and Permira paid £700m for the company in 2004. The bank won a mandate the following year alongside Royal Bank of Scotland and HSBC to refinance £200m for the women's fashion retailer.