Sky News has learnt that Manzanita Capital, a private investment firm, has approached investment banks about initiating a process that would see Space NK changing hands after more than 20 years under its ownership.

Retail industry sources said on Thursday said that bankers were expected to be appointed in the near future, although it was unclear which firm would land the mandate.

One said that based on Space NK's financial performance, it could be worth between £300m and £400m.

Manzanita, which also owns the French perfume house Diptyque and Susanna Kaufmann, an Austrian luxury skincare brand, is said to be undecided about whether to sell a minority or controlling interest in Space NK.

Founded in 1993 by Nicky Kinnaird, Space NK - which is named after her initials - trades from 76 stores and employs more than 1,000 people.

It specialises in high-end skincare and cosmetics products, and has reported a robust post-Covid trading performance.

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In its most recent accounts filed at Companies House, its said that earnings before interest, tax, depreciation and amortisation nearly trebled in the year ended March 25, 2023 to almost £6m.

Manzanita previously explored a sale of Space NK in 2018, hiring Goldman Sachs to handle a strategic review, but opted not to proceed with a deal.

Manzanita and Space NK both declined to comment.