The management team at footwear retailer Faith have appointed corporate finance house Baker Tilly, to help them find a buyer for the business.
Faith chairman Steve Cotter and managing director Steve Swaby have met with several venture capitalists about getting backing for a management buyout of the business, which was put on the market this week by its bankers, Barclays.
The appointment of Baker Tilly by Cotter and Swaby is an unusual twist as Barclays has also appointed a firm to handle the sale - FTI Consulting, which is acting on behalf of both the bank and Faith. The sale process came about after Barclays rejected a debt for equity swap offer from Faith's private equity owners Bridgepoint Capital.
Faith's Steve Swaby told Drapers this afternoon: "We are not in breach of any covenants. We are solvent and trading lawfully and legally and will continue to honour our commitments."
Swaby added: "The business needs a further injection of funds. Baker Tilly is acting on behalf of the management and looking for bidders. The management team believe we can offer greater value for the business and we believe it will be sold as a going concern."
Swaby went on: "We have seen six venture capitalists in the last couple of days and we anticipate we will have an indication of first round offers some time next week. We have found there to be an overwhelming level of support for the business out there."
Swaby did not rule out a sale to a trade player but said it was probably a less likely conclusion.
He added that the business had recorded double digit sales increases at its remodelled stores.