Liberty has accepted an offer of £32 million from BlueGem Capital Partners.

London-based department store Liberty has accepted an offer of £32 million from BlueGem Capital Partners.

Liberty was established in 1875 as a fashion and homewares retailer, mainly trading from its flagship London store.

London-based BlueGem is a private equity company formed in 2006, with invested capital of over €200 million. It focuses on investments in the UK and Italy.

This year Liberty also sold its mock-Tudor central London building for £41.5 million in cash and agreed to lease it back from the new owners.

As a small company quoted on AIM, Liberty has suffered from illiquidity and limited institutional interest in its shares, according to the company’s directors. The board concluded its prospects would be better as a private company with a backer with a retail focus and significant capital for its future development.

Liberty was advised by Cavendish Corporate Finance and Global Leisure Partners.