The business, which counts stars such as David Beckham and Naomi Campbell among its customers, said that the interested party would help drive the international luxury brand forward as it makes debuts in Dubai and Hong Kong before Christmas.
Theo Fennell chairman Richard Northcott said: 'The group's investment and development in the brand over the past few years is beginning to generate returns. Following an approach regarding a potentially significant investment in the group, the board believes now is the optimum time to consider new investment to accelerate our development into a global luxury goods business.'
Loss after tax for the six months to September 30 was reduced to£64,520, from£169,751 last year. Sales were up by 4.5 per cent to£7.6 million against£7.2 million for the same period last year.
Seymour Pierce retail analyst Richard Ratner said that the group had 'performed much better than most of the mid-market jewellers. Moreover we believe that trade in October has continued in positive territory - one of few'
The group recently announced that it had finalised international expansion agreements, giving the company a presence in the Middle East and Asia. Following a licensing deal, Theo Fennell is on track to launch a fragrance next year.