Silverfleet set to step into Hunter's shoes

RETAIL and property tycoon Sir Tom Hunter is in talks to sell off his Office shoe shop chain to private equity investors for about £150 million.

Silverfleet Capital, which is led by former Bain & Co partner Neil MacDougall, is understood to have entered into exclusive negotiations to buy the chain which has more than 70 outlets across the UK.

Hunter, who owns Office through his investment firm West Coast Capital, bought the shoe chain in 2003 for about 15m.

Office, led by chief executive Brian McCluskey, has been performing well despite the recession. In the year to 31 January, the firm saw pre-tax profits nearly treble to 15.6m, while turnover rose 29 per cent to 146m. During the year the firm also reduced its bank debt by 5.3m but also saw its debt to "other creditors" increase by 7m.

As well as its 74 shops, Office has concessions in Harvey Nichols, Selfridges and Topshop.

Hunter's other investments include fashion retailer USC, and stakes in House of Fraser and Wyevale Garden Centres, although some, such as his stake in housebuilder Crest Nicholson, were wiped out in the recession.

Hunter declined to comment.