The firm is advising regular private equity client Alchemy Partners, which is understood to have held talks with Mosaic Fashions, one of Baugur’s major British investments.
Corporate partners Ian Martin and Simon Perry are leading the Macfarlanes’ team advising Alchemy.
Mosaic — the company behind High Street names including Oasis, Coast and Karen Millen — has turned to Manchester-based Heatons for advice on any potential bid.
Cleary Gottlieb Steen & Hamilton is in line for a role as TPG, one of the
The interest from private equity houses could thwart the ambitions of Arcadia-owner Philip Green, who has been looking at buying Baugur’s debt as a means to gain control of some of the retail assets.
The fashion tycoon has previously turned to Freshfields Bruckhaus Deringer and Ashurst in the past, although neither is thought to be involved on this occasion.
Meanwhile, magic circle firm Allen & Overy is the likely beneficiary for Baugur. The firm is a long-standing corporate adviser to the company, previously acting on deals such as its bid for Somerfield, as well as the management buyout of Hamley’s toy store in 2003.
Baugur’s problems come after the collapse of Icelandic banks including Kaupthing and Landsbanki, which hold the company’s debt. The bank collapses have generated a number of roles across the City for firms including Freshfields, Slaughter and May and Denton Wilde Sapte.