Hotter Shoes is set to be sold to private equity firm Electra Private Equity for £200m.
The footwear retailer, which has about 50 shops across the UK and is sold through independents, hired investment bank Rothschild in October to explore options for the business.
Stewart Houlgrave, Hotter’s founder, will retain a significant stake and have a continuing involvement in the business. Chief executive Peter Taylor, the former managing director of wellington brand Hunter, and the rest of the management team will remain with the company.
In 2007 Gresham Private Equity took a £21m minority stake in the British-made comfort brand, which reported a 9% rise in sales in 2012 to £74.9m.
Hotter was unavailable for comment.