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LONDON, Jan 3 (Reuters) - Private equity firm 3i hashired investment bank Rothschild to sell its troubled upmarketlingerie chain Agent Provocateur, two sources familiar with thematter said.
One source said sovereign wealth funds and high net worthindividuals, as well as distressed debt specialists, had beenapproached about the sale of the brand, which is promoted bycelebrities such as the Kardashian sisters and Alexa Chung.
The source added that 3i was considering retaining aminority stake in the business, adding that the level ofinterest would determine what happens next.
3i and Rothschild both declined to comment.
In November the London-listed investor said the retailer hadbeen hit by a luxury spending slowdown. Its problems had beencompounded by what 3i called the inconsistent execution of arecent store expansion programme and accounting issues.
3i, which announced the acquisition of the chain in 2007,wrote down the value of the investment by 39 million pounds inthe six months ending Sept. 2016. Prior to this in March 2016,it had said the business was valued at 42 million pounds ($51.5million).
Restructuring company AlixPartners has been working withAgent Provocateur as 3i looks at its options for the company,one of the sources said. AlixPartners declined to comment.
According to filings for the 52 weeks to March 28, 2015, profit after tax for the underwear brand, which operates in morethan 30 countries, was 3.7 million pounds, down from 4.7 millionpounds in the year before. Turnover rose to 61.7 million poundsfrom 53.1 million pounds.
Agent Provocateur was created in 1994 by Joseph Corre, sonof British fashion designer Vivienne Westwood. Its manufacturingoperations consist of suppliers in Britain, Asia, continentalEurope and North Africa.
The company says manufacturing in Britain and Europe hasdeclined over the last decade but it continues to use Europeanlaces, fabrics and trims where possible. ($1 = 0.8146 pounds)($1 = 0.8161 pounds) (Reporting by Dasha Afanasieva; Editing by Keith Weir)
