Cath Kidston is eyeing a sale in the new year which could value the retailer at £250m.
Private equity firm TA Associates, which bought 60% of the quirky home and lifestyle retailer in 2010, is planning to put it on the market with investment bank UBS appointed to handle the sale, according to Sky News.
A Cath Kidston spokeswoman said: “Cath Kidston is growing rapidly and has exciting plans to capitalise on the international appeal of its brand. In these circumstances it is prudent that the company and its owners should carefully assess the options available to take the company through the next stage in its evolution and UBS has been appointed to help.”
The business is expected to attract interest from private equity firms, sovereign wealth funds and other retailers.
An IPO is not thought to have been ruled out by TA Associates.
Cath Kidston, famed for its floral patterns, has 200 stores across the UK, Europe and Asia. It opened a flagship store next to Fortnum & Mason on Piccadilly in London yesterday.
EBITDA jumped 13% to £21m in its year to March 31, 2013 while network sales soared 24% to £129m.