Private equity companies run ruler over Colette by Colette Hayman chain

It is believed two parties have recently come forward for an acquisition of the Colette by Colette Hayman fashion and accessories chain. Picture: AAP

A sale of the collapsed fashion and accessories chain Colette by Colette Hayman could be imminent, with two parties said to be closing in on the business.

Earlier, it was thought the future of the retailer could be hanging in the balance, with voluntary administrator Deloitte unable to find any acquirers and a liquidation on the cards.

Now it is believed that two parties have recently come forward for an acquisition, both thought to be private equity firms.

While it is unclear which funds are circling, some believe distressed opportunity buyer Allegro Funds Management would be a logical contender, adding to other retail businesses within its portfolio.

Colette was founded in 2010 and about three years ago, Colette and Mark Hayman sold a 49 per cent stake to the private equity arm of IFM Investors.

At its peak, the chain had about 180 stores, including sites in Britain and South Africa, but that had been steadily reduced to 140 with 126 stores in Australia and 14 in New Zealand.

When it collapsed in February, Colette had annual sales of more than $140m and 140 stores across Australia and New Zealand.

It struggled to secure cash following the Christmas sales and when it collapsed, about 150 unsecured creditors were owed about $10m.

Deloitte signalled in February that 33 stores were to close, and there were later 93 stores that were forced to shut amid the coronavirus pandemic.

Colette is among a handful of fashion retailers that have fallen victim to the challenging trading restrictions compounded by the COVID-19 global pandemic.

Other collapses this year include the Pas Group and swimwear brands Seafolly and Tiger Lily, while Jeanswest and Harris Scarfe also faltered last year.