LONDON — The owner of Joseph, one of the U.K.’s leading designer-label retailers and a prominent wholesaler of its own private label, is looking to sell or float the business five years after purchasing it.
Banking sources said Compagnie Nationale a Portefeuille (CNP), the investment company owned by Belgian financier Albert Frere, has given a mandate to BNP Paribas, indicating he is leaning toward the sale of his 54 percent stake.
Industry sources estimate the company’s value to be 100 million pounds, or $185 million at current exchange, the same value Joseph commanded back in 1999. A spokeswoman for the bank declined to comment.
The project is still in its very early stages, according to sources, and BNP Paribas has not yet officially contacted any potential investors. Those investors could include Equinox Luxury Holdings, which owns a 51 percent stake in the London-based Jimmy Choo.
Robert Bensoussan, a shareholder in Equinox and chief executive of Jimmy Choo, coordinated with Arthur Anderson the sale of Joseph to Frere.
He is looking for investments in the fashion and luxury goods sector. Bensoussan declined to comment.
Other potential investors include Change Capital Partners, the private equity vehicle belonging to former Marks & Spencer chairman Luc Vandevelde.
One industry source said he was not surprised that Frere wanted to sell. “I think he was expecting more aggressive development in the business, which never happened. The company is being valued at the same price as five years ago when the first deal was done. That should say something.”
Joseph’s current annual sales volume is about 52.8 million pounds, or $97.7 million, compared with 44.6 million pounds, or $82.5 million, at the time of the purchase.
Frere, who did not return phone calls this week, bought his stake for $48.7 million. Founder Joseph Ettedgui, who is chairman of the company, still holds a minority stake along with his brother Franklin. A Joseph spokeswoman did not return phone calls this week.