Linda Bennett, the founder and owner of the LK Bennett fashion chain, has become one of the first entrepreneurs to blame in part the Chancellor’s proposed increase in Capital Gains Tax (CGT) for a decision to sell up.

Revealing that there had been already been “considerable interest,” the “Queen of the Kitten Heel” added yesterday that she hoped that a new owner would help to take the luxury brand on to the international stage.

Bankers at Rothschild issued the sale document last week and sources close to the company said that Middle Eastern and American buyers were among those interested. It is thought that Rothschild is looking for a price of £150 million.

In her first interview for two years, Ms Bennett refused to comment on the potential sale price but said that she expected a deal to be concluded by March, before the new tax rate of 18 per cent comes into effect.

The increase, from 10 per cent, has been widely criticised in the City and cited as one reason why Sir Ken Morrison could sell his family’s stake in the Morrison’s supermarket chain before he steps down in three months’ time.

Ms Bennett said that the tax was an “obvious” factor, but added that the key reason for trying to find a buyer was to accelerate the chain’s future growth. Results to be filed at Companies House this week will show that LK Bennett’s pre-tax profits across the group’s 76 stores rose fivefold to £8.6 million in the year to July 28. Total sales rose nearly 14 per cent to £45.4 million.

Ms Bennett said: “The business has been transformed over recent years and is in a very strong financial position. It does not need more money but it can grow faster with more capital. We realise we now need to start thinking about international expansion and therefore feel it is a good time to look at a different structure for the business.” She hinted that she was likely to step back from day-to-day control when a buyer was found. “I have not decided whether to stay or go. Staying is an option but it depends on the new owners, their plans and whether I have the right role.”

She added: “The time is right to sell and I want to spend more time with my family.”

Ms Bennett has become one of the fashion industry’s best-known entrepreneurs, with Penelope Cruz, Sadie Frost and Kate Moss among her celebrity fans. A planned auction was dropped three years ago when bids failed to meet a rumoured £75 million asking price. Aggressive store expansion since then has taken LK Bennett to 76 sites.

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