Brisbane-based clothing company Lorna Jane will reportedly be put up for sale at a $500 million price tag.
The Australian Financial Review reported on Thursday private equity firm CHAMP Ventures and company founder Lorna Jane Clarkson have decided to sell the business after abandoning plans to publicly float its shares.
Bankers from Credit Suisse’s New York branch have been called in to run the auction, AFR reported, with news of the impending sale expected to be announced by Lorna Clarkson and her husband and co-founder Bill Clarkson.
However, a spokeswoman from Lorna Jane's Brisbane head office said there were no announcements planned by the company. She said the business would not be responding to reports that it would be put up for sale.
The AFR reported that at least five expressions of interest had been received from large US exercise chains, retailers and sporting goods businesses.
Lorna Jane was established in Brisbane and opened its first store in 1993.
Since then, the popular women’s leisurewear chain has expanded to 155 stores, including 25 in the United States.
CHAMP Ventures bought into Lorna Jane in 2010, reportedly purchasing a 40 per cent stake.