Barclays is sole bidder for Phase Eight

DESIGNER Patsy Seddon, founder and majority owner of fashion retailer Phase Eight, is to pocket a multi-million pound windfall.

The company, which uses model Yasmin Le Bon in its advertising, has entered into exclusive sale talks with Barclays Private Equity and is likely to fetch about £30m.

It is believed that the bid is being fronted by Stephen Sunnucks, former chief executive of youth fashion chain New Look.

The sale will bring windfalls for minority shareholders Maurice and Michael Bennett, the entrepreneur brothers who founded Oasis.

The sale comes only weeks after Barclays completed the sale of retailer Hobbs to 3i in a £111m deal that netted the private equity firm a return of five times its original investment.

Completion of the Phase Eight deal will mark the successful end to an auction conducted by Cavendish Corporate Finance.

Barclays fought off stiff competition from several rivals believed to include Phoenix Private Equity, the firm behind fashion retailer Jimmy Choo.

Phase Eight has 60 branches and several concessions in department stores. It is a much smaller business than Hobbs, but meets Barclays' criterion of a company with considerable potential for expansion.