Jane Norman bought

Fashion retailer Jane Norman has been sold to a management buy-out team backed by Baugur and Kaupthing Bank for£117.4 million.

Jane Norman was started in 1994 by chief executive Saj Shah and operates 39 stores and 56 concessions across the UK.

Baugur Group managing director of UK investments Gunnar Sigurosson said: 'Jane Norman is a fantastic business and just the sort of company Baugur wants to invest in. We are backing a management team with a proven track record and a fast-growing brand. We believe this company has great potential.'

Jane Norman reported sales of£70.7 million in the year to March. The retailer said that profits have grown by 250 per cent in the past five years.

It is understood that the retailer will be kept separate from Baugur's stable of fashion retailers - including Karen Millen and Oasis - grouped under the Mosaic name.