L Capital, the private-equity arm of luxury giant LVMH, is among suitors plotting to make a major investment in fashion retailer Joules.

L Capital, which was created in 2001 with backing from LMVH, Groupe Arnault - the holding company of LVMH’s chief executive Bernard Arnault - joins LDC, the private equity arm of Lloyds Banking Group, which is also eyeing a stake in Joules.

However, Graphite Capital is understood to be out of the running, according to The Independent.

Joules, which has more than 70 stores, has hired advisers at Rothschild and is mulling options to raise funds for expansion in the UK and overseas.

It was thought that founder Tom Joule wanted to sell only a minority stake but he is now considering selling a majority shareholding. It is understood that Joule, who founded Joules in 1994, wants to remain in charge of the retailer which bears his name.

Joules, which is valued at £55m, is on track to make underlying profits of £7m in its current financial year.