Former Asda chief executive Andy Bond has set up a retail investment vehicle with a team of City bankers.

According to the Financial Times, Bond has set up the vehicle, called Sparetop, with head of retail investment banking at Goldman Sachs Daniel Yealland. It is understood the vehicle will be used to acquire small retail businesses.

Two other directors in the venture are James George, a partner at OC&C Strategy Consultants and Tim Macready, chief executive of SkillCapital, a headhunter to private equity firms.

The first venture is thought to be an online company and just weeks away.

Bond is also chairman of fashion chain Republic and online bikes retailer Wiggle.