Hobbs owner 3i reportedly prepares to offload the retailer

London - Private equity group 3i is said to be preparing women’s wear retailer Hobbs for sale. The premium label, a favourite of the Duchess of Cambridge, could sell for as much as 80 million pounds, according to a report from the Sunday Times.

3i is said to be close to hiring investment banker NM Rothschild to oversee the sale, after owning the brand for more than a decade. It would not be the first time 3i tried to sell off Hobbs - in 2013 the private equity firm attempted to sell the women’s wear retailer, but tough trading conditions made it clear that a company turnaround was needed first to secure a buyer.

However, in spite of the brand’s popularity with the Duchess of Cambridge and her sister Pippa Middleton, it has failed to turnaround and continues to struggle. The Sunday Times reported that 3i is predicted to make a loss on its 111 million pound investment in Hobbs, which it acquired in 2004 as the retailer generated 1.4 million pounds profit on sales of 104.4 million pounds in the year to January 31, 2016.

FashionUnited has contacted 3i for additional commentary

Photo: Hobbs website