Vivarte sees buyer interest

French private equity firm PAI Partners is sounding out buyers for European retail giant Vivarte, its third largest investment, only two years after buying it for £1bn) Vivarte's most recognised brand in the UK is Kookaï, which it runs through a franchise.

The Business understands PAI has hired banker Rothschild to assess interest in the company after receiving a number of approaches at the start of the year. A decision will be made within weeks. Vivarte is one of Europe 's largest shoe and clothes retailers, rivalling France's Galeries Lafayette and PPR, owner of France 's Printemps department store. It runs 2,500 shops, most under the La Halle, Chausslan and Besson Chaussures brands. Its other stores operate under the André, Creeks, Caroll, Liberto, Orcade Minelli, Merkal and Fosco brands.

A source at a rival private equity firm said he expected PAI to make a substantial return on its investment. Two years ago it was widely seen to have overpaid. A banker aiming to get involved in the bidding said the French supermarket groups Carrefour, Casino and Auchan are likely to show an interest, with Auchan said to be the most keen, given its diverse chain of DIY, sports goods and electrical shops. Private equity firms Eurazeo, Wendel Investissement, Apax Partners and Candover are also likely to enter any auction.