Jeans brand could fetch big price tag
Matalan is in exclusive talks with a potential purchaser of its Lee Cooper jeans brand.
The retailer said negotiations are at an early stage and that 'a further announcement will be made when a formal agreement is reached or discussions are discontinued.'
Broker Seymour Pierce believes Lee Cooper could be sold for as much as£45 million. It added that a sale would be 'a sensible move if it comes off, because Matalan should not be involved in the vagaries of manufacturing itself'.
Speculation continues to mount that Matalan is a bid target of Asda/Wal-Mart, which is determined to deliver further growth in the UK.
Matalan bought the jeans brand in 2001 for£45 million.
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