Buyers queue for Sara Lee brands

SARA Lee, the American conglomerate famous for the Wonderbra, has hired investment bank Goldman Sachs to look into the sale of its European underwear brands. They include Playtex and Gossard, and a sale could trigger a series of deals worth £600m.

The operations, which include labels such as Pretty Polly and Dim, the French tights and socks giant, were put under review after several quarters of missed targets.

Sara Lee, which is concentrating on its foods business, insisted last week that the review had yet to be finalised, but sources said that several private equity groups were already gearing up for a sale, which is expected to start early next year at the latest.

The brands most likely to go are the underwear ranges, many of which Sara Lee acquired after the bitterly fought takeover of Britain's Courtaulds Textiles in 2000. Sara Lee ended Courtaulds' 184-year history as an independent company with a hostile bid launched on Valentine's Day.

The new owner immediately announced its intention to sell Courtaulds' international fabrics division, but held on to the consumer brands.

Bidders may be wary, however, given that much of Courtaulds revenue comes from selling ownlabel goods to Marks & Spencer.

M&S chief Stuart Rose is likely to take a firm line with all his suppliers in an attempt to cut costs for the High Street chain as part of his recovery drive.

It is still unclear whether Sara Lee will include Pretty Polly and Dim in any sale.