Indians Put Fashion Chain East Up For Sale

East, the high street fashion chain, has been put up for sale by its Indian owner less than a year after it was rescued from a stint in administration.

Sky News understands that Fabindia, which has been East's controlling shareholder since 2012, has begun sounding out prospective buyers for the chain, which has just over 30 standalone stores in the UK.

The sale process comes amid a tough trading environment for clothing retailers, with Next (Other OTC: NXGPF - news) warning on Wednesday that it was revising its full-price sales guidance for the year to a range between -3.5% and +3.5%.

That renewed note of caution from the most successful British fashion retailer of the last decade underlined the troubled start to the year experienced by most of its rivals, with a combination of poor weather and volatile consumer confidence contributing to tepid sales.

Separate moves by BHS and Austin Reed to appoint administrators - which have put 12,000 jobs at risk - have fuelled the sense of gloom on the high street.

East, which also operates roughly 35 concessions, fell into administration in June last year, with Fabindia emerging as the controller of a new holding company for the business shortly afterwards.

A number of stores were closed as part of the process, which saw creditors receive just 10p in the pound, but retail sector sources said the attempt to restructure East had failed to achieve a transformation in its fortunes.

East continues to employ just under 500 people.

One insider said that East's sale process was focused on firms which specialise in turnaround situations, indicating the difficulties facing the company.

In a statement issued to Sky News, an East Lifestyle spokeswoman said: "Fabindia International Pte Ltd, owner of high street women’s retailer East Lifestyle Ltd, has today confirmed that it has appointed JPS Advisors to conduct a business review.

"The process is at an early stage; therefore we cannot comment further."