According to rumors posted by Bloomberg, Pepe Jeans London Group, the denim and sportswear brand holding, hired US-bank Morgan Stanley to explore the sale of the business.

The sale would include both the Pepe Jeans and Hackett brands and could fetch as much as €700 million. The company is said to have attracted interest from buyout firms including KKR & CO, Permira Advisers LLP, CVC Capital Partners Ltd. and PAI Partners SAS as well as strategic companies.

Pepe Jeans, founded in 1973, is now owned by private-equity firms Torreal, Arta Capital, L Capital and its management team, led by Chief Executive Officer Carlos Ortega. According to the rumor Ortega would stay on as CEO of the company.
Pepe Jeans’ annual earnings before interest, taxes, depreciation and amortization (EBITDA) are estimated about €60 million.

According to the piece of news, representatives at Torreal, Arta, KKR, Permira and CVC declined to comment on these rumors, while representatives for Pepe Jeans, L Capital and PAI did not immediately respond to requests for comment. A spokesman for Morgan Stanley declined to comment.