Matalan 'set to sell Lee Cooper'

Clothing retailer Matalan is poised to announce the sale of jeans business Lee Cooper in a deal worth at least £20m (€29.5m), it was reported today.

The out-of-town chain is likely to reveal the deal with Emerisque Capital, a private equity firm, at the same time as annual results tomorrow, the Times said.

Matalan announced in October that it was in talks about the sale of the France-based business, which it acquired in 2001 after beating off competition from the owner of Wrangler.

The deal was important to Matalan at the time as it enabled it to create exclusive ranges for its stores, which sell a large amount of Lee Cooper jeans.

It is likely the agreement with Emerisque will allow Matalan to continue selling the jeans in its stores in the UK.

Market watchers expect discount retailer Matalan to post pre-tax profits of £80.4m (€118.5m) tomorrow, against £58m (€85.5m) last time.