An Icelandic bank has backed the secondary buy-out of a London-based womanswear retailer. Phase Eight, which has stores and concessions across the UK and Ireland, has changed hands in a £51.5 million deal led by Kaupthing.

An Icelandic bank has backed the secondary buy-out of a London-based womanswear retailer. Phase Eight, which has stores and concessions across the UK and Ireland, has changed hands in a £51.5 million deal led by Kaupthing.

Kaupthing, through its principal investments division, invested equity and debt in the deal. Other investors included Saj Shah and Ian Findlay of clothing retailer Jane Norman as well as former Kookaï boss Michael Rahamim and the Tchenguiz Family Trust.

The management team was led by chairman David Brock, finance director George Reynolds, brand director Judith Bremner and head of merchandise Lee Harlow, who all invested in the deal.

The company was sold by Barclays Private Equity, which held a 72 per cent share of the business since backing a £27 million buy-out two years ago.

The consortium was advised by law firm Eversheds with Kaupthing providing financial advice. Kirkland Ellis advised the Tchenguiz Family Trust with SJ Berwin assisting Shah, Findlay and Rahamim.

PricewaterhouseCoopers managed the financial and commercial due diligence reports. Management was advised by Pinsent Masons. Barclays received legal advice from Addleshaw Goddard with financial advice from Hawkpoint.

Phase Eight operates 56 high street stores and 92 concessions designing and selling occasion-wear, smart daywear and accessories. In the year to the end of January 2006, the company reported an operating profit of £3.5 million from a £38 million turnover.