Buyout giant TPG in talks to wash hands of VictoriaPlum

The buyout giant TPG (Taiwan OTC: 6521.TWO - news) is in talks about a sale or merger of VictoriaPlum, the online bathroom retailer, in a deal that would crystallise another poorly performing UK investment for one of the world's most prolific private equity investors.

Sky News has learnt that TPG has been exploring a merger of VictoriaPlum, which it bought in 2014, with Bathstore, the high street chain which trades from more than 150 stores across the country.

Sources said the talks between TPG and Bathstore had been taking place for some time but that they had appeared to stall in recent weeks and might not lead to a deal.

Under the plans being discussed, TPG would cede control of VictoriaPlum to Bathstore's American owners, according to one insider.

The talks come after a difficult year for the European operations of TPG, which through its various platforms is an investor in companies such as Cirque du Soleil, Spotify and J Crew, the fashion label.

In March, TPG was forced into a restructuring of Prezzo, the casual dining chain it controls, following a steep downturn in the market.

Dozens of restaurants have since been shut as part of a rescue plan.

TPG also owned Poundworld, the value retailer which plunged into administration during the summer.

The buyout firm had bought it for £150m, and subsequently ploughed tens of millions of pounds more into the business.

TPG's previous UK investments included Debenhams (Frankfurt: D2T.F - news) .

TPG's efforts to offload VictoriaPlum, which previously traded under the virtually identical name Victoria Plumb, come amid expectations of a difficult Christmas trading period across the retail sector.

The latest accounts for the company filed at Companies House showed a 9% rise in turnover to £63m in the year to 28 February, with a £0.2m operating profit following a £5.7m loss during the previous 12 months.

Bathstore has changed hands between private equity owners on several occasions, and is now owned by a US-based family investment vehicle.

TPG declined to comment, while Bathstore did not return calls seeking comment.