PricewaterhouseCoopers has been appointed to advise on a strategic review of the business options.
Bridgepoint backed an£87 million management buyout of Adams, taking it private in 1999. The retailer was originally part of the Sears empire.
Adams faces fierce competition in the UK, primarily from Asda's George kids collection and Tesco.
Adams was unavailable for comment.
In October, Retail Week reported that the retailer had bolstered its board and was prepared for expansion. Key components of its growth plan included the opening of more UK stores, entry into untapped overseas markets and the launch of more brands, in addition to its existing TU products sold exclusively in Sainsbury's and Mini Mode in Boots.
Group marketing director Ronny Helvey said that he intended to open a further 15 stores by the end of next July, based on the blueprint of its outlet at Bluewater in Kent.
He also dismissed speculation that Bridgepoint Capital was considering exiting. 'All venture capitalists reach a point where they want to move on, but Bridgepoint are about three years away,' he said.
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