million. While Foot Locker or Under Armour would be a more logical fit for the brand in comparison to Urban Outfitters, which also operates the Anthropologie, Free People, BHLDN, and Terrain brands, it is understood the fashion group is seeking a slice of the lucrative fitness and activewear market. The sale would see it compete against major players such as Lululemon and Gap’s Athleta. “Foot Locker could make sense for them because it’s in an aligned area,” James Stewart, partner at Ferrier Hodgson, told Inside Retail PREMIUM, of Lorna Jane’s ownership options. “Typically, private equity will either do a trade sale or an IPO depending on what they feel will maximises the return on investment. [Lorna Jane] is obviously out there floating around looking at trade buyers,” Stewart said. Lorna Jane is majority owned by founders Lorna and Bill Clarkson, while private equity firm, Champ Ventures, holds a 40 per cent stake, purchased in 2010. The co-owners have appointed Credit Suisse in New York to spearhead the sale process in May, abandoning plans for an initial public offering. It is understood the Clarksons will retain a stake in the company and are looking for a buyer to help grow the brand internationally, particularly in the US. Despite the mounting speculation, Stewart says “names that get bandied around don’t always reflect who is actually looking at the business”. “There’s a good chance [Urban Outfitters] is interested, but with these sorts of negotiations discussions are held in pretty tight confidence most of the time. “It’s not generally in anyone’s interest to communicate who is a likely buyer. A great example of this is Woolworths South Africa taking over David Jones. The market really had no idea about until it was announced.” Since launching in the US two years ago Lorna Jane has opened more than 20 stores. Earlier this year the women’s sportswear chain revealed plans to double its US store count in 2014, with 24 new stores earmarked.