Icelandic bank Kaupthing has abandoned plans to sell Oasis, Coast and Warehouse after insisting the market “does not currently recognise the value” of the businesses.
Kaupthing, which acquired the retailers from Mosaic Fashions in 2009 but collapsed amid Iceland’s financial crisis, put the chains up for sale earlier this year.
A number of parties, including Edinburgh Woollen Mill owner Philip Day, turnaround specialist Endless and private equity firm Alteri were all linked with bids for the fashion businesses.
Last month however, it emerged that Kaupthing was in exclusive talks with Emerisque Brands about a deal for Oasis, Coast and Warehouse, which have 750 stores and employ more than 6,000 staff between them.
But Kaupthing has now shelved the sale process and said it was under no pressure to offload the retailers.
Sources close to the situation said Kaupthing believes is can “drive more value” from the chains following a “very strong” first half for the businesses.
As a group, Oasis, Warehouse and Coast are understood to have delivered like-for-like sales growth of 4.9% during the six-month period.
Kaupthing chief executive Paul Copley said: “We have been in a sale process for the last few months and can confirm today that we have withdrawn from that process.
“We feel that the market does not currently recognise the value we see in the businesses.
“We are under no pressure to sell the brands and we look forward to working with their management team to generate value for our stakeholders.”