THE bosses of Faith, the struggling shoe retailer, are attempting to stage a buyout of the business after its main lender, Barclays, decided to put the chain up for sale rather than agree a debt-for-equity swap deal.

Executive chairman Steve Cotter, a veteran retailer, and managing director Steven Swaby, who has previously worked at Dune and Miss Selfridge, are being advised by corporate financiers at Baker Tilly, the accountant. They are in talks with several potential backers, including Darwin Private Equity, Epic Private Equity and Endless.

Faith has been owned since 2004 by Bridgepoint, the private-equity group, which acquired the chain in a £64m buyout. The firm is said to be supportive of the management, and has injected a further £15m into the business.

Faith now requires additional funding for store refurbishments and improvements.

Bridgepoint offered to put another £8m into the business in return for a capital restructuring that would see Barclays take some of the equity.

The bank, which is thought to be owed about £25m by Faith, rejected the proposal, opting instead to see whether a buyer could be found.

It brought in FTI Consulting, a restructuring firm, to handle a sale. It is understood that Faith has not breached any of its banking covenants.

The retailer has 85 stores and 130 concessions, and employs about 2,400 staff.

Faith was founded in 1964 by Samuel Faith. It was sold to Bridgepoint by his son Jonathan. As well as the chain’s management, other interested parties are said to include at least one trade rival and a consortium of Indian investors.

The shoe-retailing sector has proved to be one of the toughest places on the high street and has claimed a number of casualties, including Dolcis, of which Epic was a backer, and Stead & Simpson.

Analysts expect more retailers to run into difficulty as the economy deteriorates.

Times Recommends

• C&G axed - 1,660 jobs to be lost
• UK house prices rise 1.1% as buyers return
• Mixed reaction to US banks repaying bailouts