Hobbs, the UK-based ladies clothing retailer owned by private equity group 3i, is reportedly considering a sale or flotation.

According to the Daily Mail, 3i is in the process of reviewing options for the business, with a sale tipped to fetch £150m. Latest financial results for Hobbs showed that profits fell slightly to £11.4m for the year ended 28 January 2006, while turnover stood at £74.7m, an increase of £7.7m on the previous year. 

3i acquired its 65 percent stake in the business through a secondary buyout in 2004.

Speculation over the future of Hobbs began last December, when 3i were rumoured to have hired corporate advisory firm Hawkpoint to advise on a sale. 

From its beginnings in 1981 as a single store in Hampstead, Hobbs now operates throughout the UK and Ireland and is looking to expand into the Far East, Middle East and America over the next few years. The business employs around 1,000 staff.