Updated: The Original Factory Shop has today denied that the value department store has been put up for sale by private equity owner Duke Street.

Following a report in the Daily Telegraph today, the Original Factory shop issued a statement which said: “Following media speculation regarding a sale of The Original Factory Shop, Duke Street would like to state that it is not running a sale process for the company. There is considerable potential for growth of the business and Duke Street will continue to work with the management to maximise these opportunities.”

A spokeswoman denied that KPMG had been appointed as advisors to the 134-store chain.

Last month it was reported that Rothschild had been appointed to advise on long-term opportunties.

This morning the Telegraph reported that the chain had been given a £200m price tag after it defied the downturn with rising sales and earnings.

The chain, led by former Debenhams managing director Angela Spindler, reported sales of £132m in the year to March 28, up 35% on last year.

It was reported the chain would be expected to go for between £160m and £200m.

The private equity group backed a £69m management buyout in 2007.