Music Magpie is in “early-stage discussions” with potential buyers as it seeks a private sale.
The secondhand tech retailer is in talks with both BT Group and pan-European private equity group Aurelius, which bought The Body Shop last week.
Music Magpie said in a statement to the City that discussions with BT and Aurelius were ongoing and “remain at a very early stage”. It added that there was no certainty an offer would be made from either group.
A deadline for both BT and Aurelius to announce their firm intention to make an offer has been set for 5pm on December 18, 2023.
Music Magpie is on the hunt for a buyer just two years after going public, following slow US growth and the collapse of its share price.
In its last trading update, interim results for the six months to May 31, 2023, Music Magpie posted a 7.7% jump in EBITDA year on year to reach £2.8m despite a “challenging start” to the year.
Group revenue was £61.9m in its first half, down from £71.3m in the same period last year.
The retailer attributed its first-half performance to postal strikes and “low consumer confidence” but said trading performance “strengthened” from February onwards.
Aurelius, which also owns Footasylum, snapped up The Body Shop for £207m on 14 November.
The group said the acquisition would bring the “opportunity to re-energise an iconic global beauty and personal care brand with impressive consumer recognition”.
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