Karen Millen owner invites bids for the premium fashion chain

Karen Millen's owner, the Icelandic bank Kaupthing, is expected to begin talks with potential bidders for the premium fashion chain in the coming days.

According to Sky News the bank has decided to kick off an auction process, which is being handled by advisers from Deloitte, whose appointment was revealed last month. Neither party has commented on the news.

Karen Millen acquired the brand and certain assets from the Coast brand from administrators last year. The company recorded sales of £162m in the year to February 2018 with a pre-tax loss of £9.5m.

It currently operates around 58 standalone stores and 164 concessions globally and has recently been expanding further through the signing of a number of licensing deals, including footwear with Pentland Brands, swimwear with Heidi Klein and accessories with Global Brands Group.

The moves have been part of chief executive Beth Butterwick's plans to create a global lifestyle brand.

Kaupthing also owns the Oasis and Warehouse brands and ran a sale process for those brands in 2017 but failed to reach any agreement with suitable bidders.

Karen Millen was founded by the designer of the same name in 1981 and was sold to Oasis 2004. Millen is no longer involved with the business and has tried, and failed, to regain the use of her name on clothing designs. She was declared bankrupt two years ago due to losses connected to the failure of Kaupthing in 2008.