Phase Eight taps Rothschild ahead of potential sale

The impending sale of Phase Eight, which is expected to bring in 300 million pounds seems to be looming closer as private equity firm TowerBrook, owner of the fashion retailer, is understood to have appointed Rothschild as adviser. TowerBrook, which currently owns 60 percent of the womenswear

retailer after investing 80 million pounds in Phase Eight over three and half years ago, is set to hold an auction for the business later this year, reported the Sunday Telegraph. The management team at Phase Eight is understood to owned the remaining 40 percent of the company.

It

is noteworthy that a handful of private banks and financial advisers have been mulling the equity firm to trust the with Phase Eight's sale.

Early this summer, all sights within the trade were set on the potential sale, as TowerBrook started hinting its intentions of expanding the label to cash out on the company´s profit rise in its British home market.

Rothschild to act as advisor ahead of sale of Phase Eight

Earlier this year the private equity firm had to reassure staff at Phase Eight after taking on a 'highly criticsed' five year refinancing plan, which saw Towerbrook's benefit from a further 90 million pound loan onto the womensretailer that allowed it to receive a multi-million pound dividend. Before its refinancing was made public, the fashion retailer had already brought in 16.4 million pounds in debt-related interest payments.

However, TowerBrook reported that the refinancing plan is currently supporting Phase Eight international expansion scheme, which will be rolled out overt the next five years to target emerging markets, as well as the US. Ben Barnett, chief executive at Phase Eight said in June that the firm was “definitely exploring” options in the US and studying its market. At the time he added that an intial public offering was not being considered.

News surrounding a potential sale comes after the fashion retailer reported a rise in underlying earnings. Annual sales at Phase Eight increased 15 percent to 141 million pounds in the 12 months to February 1, 2014, with with earnings before interest, taxes depreciation and amortisation growing 16 percent to 24 million pounds.

Phase Eight, which is best known for its evening wear and wedding gowns, currently operates over 400 stores, including 98 stores overseas in countries such as Sweden, Switzerland and Singapore.