Sanity valued at £10m as suitors' interest builds

A£10 million price tag has been slapped on Australian-owned UK music chain Sanity by BDO Stoy Hayward, appointed last week to conduct the sale.

Sanity, formerly Our Price, has been the subject of a review by Australian owner Brazin, which considered options such as rebranding the shops to other fascias.

Peter Hemmington, head of mergers and acquisitions at BDO's London office, said interest had come from businesses interested in creating a DVD-only chain, and included entrepreneurs, DVD suppliers and retailers.

He said the£70 million-turnover chain was breaking even and made£3.5 million when head office costs were stripped out.