A for-sale sign is understood to have been hoisted over catalogue fashion retailer Grattan as parent company Otto UK nears the end of its strategic review.

Grattan has been touted around the market as the home shopping group assesses the value and interest for its wider retail business.

As revealed by Retail Week (February 1), Otto UK started a review of its UK business in December. It is understood that it could sell part or all of its retail division, which also includes Freemans, Kaleidoscope and young fashion brand Oli.

Despite home shopping retailers including N Brown and Asos reporting strong trading so far this year, the agency model has suffered from the economic downturn. Redcats UK is one casualty, revealing it would close its Empire Stores business in January.

Otto UK chief executive Mike Hancox said: “There have been various conversations as part of the strategic review and part of this has to be conversations to see what interest is out there.”

However, the company is committed to keeping its distribution arm, Parcelnet, which is said to be the “golden nugget” of the business and will remain under Otto’s control.

Home shopping company Findel is understood to be one of Grattan’s potential buyers. Chief executive Patrick Jolly declined to comment on the speculation, but confirmed that the retailer was “looking for acquisitions to complement growth”.