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Agent Provocateur might soon be sold off to their lender

Agent Provocateur might soon be sold off to their lender

It was right at the beginning of the year that the Luxury lingerie chain Agent Provocateur declared that they were not being able to profit much from their business and is thereby ready to put up the brand on sale. Seeking an offer in excess of Agent Provocateur’s £30m debt, the brand has put itself out for sale. Agent Provocateur , private equity firm 3i is however struggling to find a buyer for the business and if the present situation persists then the brand might be passed into the hands of its lenders as its private equity owner.

3i is understood to be working hard to find a buyer, which is willing to pay more than the £30m value of Agent Provocateur’s debts, but offers so far have been beneath that amount, according to a recent report . The private equity firm acquired a controlling stake in the business for £60m 10 years ago from its co-founder Joe Corré, the son of fashion designer Dame Vivienne Westwood.

Earlier this month it called in restructuring experts Alix Partners to line the business up for a possible sale after accounting irregularities were discovered last year. At that point 3i had to write down the value of the business by £39m and injected a further £4m in cash into it. According to the ongoing financial reports, its lender Barclays has now been put on alert and is preparing to seize control of the business. Some potential buyers are circling the business it is believed, including Alteri Investments and Endless and retail tycoon Theo Paphitis, owner of the Boux Avenue chain, is also a significant name within the list of buyers. Along with these significant offers, Agent Provocateur has also received 9 more relevant offers from its lenders and rivals.

However, if Barclays does take control as it is expected it would be sold quickly, for a knock-down price. So it is only a matter of a few days by when the final destiny of the glorious Agent Provocateur  will be decided. 

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