Cosmetics manufacturer Disperse is considering selling some of its key brands including Woods of Windsor and Elizabeth French after receiving approaches but warned this may not even cover its debt pile.

Disperse said it has been approached by a number of parties potentially interested in parts of the business and is currently looking to see how much its brands could fetch in a sale.

“However, for shareholders, there can be no guarantee that the disposal values to be negotiated will exceed the company’s current level of indebtedness,” it said in a statement.

Sales for the year to December are expected to be in line with previous expectations at around £18m. Pressure on margins over Christmas period is likely to drag gross margin about 1% lower at 46%.

Posted: 01|18|07 at 2:51 pm. Filed under: UK News.