M and M Direct’s private equity backer TA Associates is considering its options for the etailer which could include a sale or float.
TA Associates, the private equity firm that bought M and M Direct in 2007, has appointed bankers from Canaccord Genuity to explore its options.
The etailer is understood to be valued at £100m to £150m.
M and M Direct, which sells discount clothing online, was courted by Sports Direct tycoon Mike Ashley in 2011, who wanted to add it to his growing fashion empire. However, it is thought if it takes the sale route, M and M Direct is more likely to end up with another trade buyer or in the hands of another private equity firm.
M and M Direct sells products from more than 300 brands including Diesel, Nike and Ralph Lauren.
M and M Direct full year EBITDA is expected to have surged 20% in its year to February, 2014, while sales are forecasted to have grown to £120m.
The etailer, which is run by former John Lewis online boss Jonathon Brown, had a stellar Christmas with sales jumping 9% year on year in December.
TA is also eyeing a sale of its interest in premium lifestyle retailer Cath Kidston.