Give me Liberty ...

The venerable British retailer, which put itself on the block this spring after revamping its style in a fashionable way, may have found a buyer.

BlueGem, a private equity firm run by the former managing director of Merill Lynch Global Private Equity Marco Capello, created a new division called BGL that is thought to be the winning bidder for the brand.

The offer, £32 million ($46.1 million U.S.), which comes to 141.8p per share plus a special dividend of 44.2p per share to be paid on the offer being made unconditional.

"The Liberty board which has been so advised by Cavendish Corporate Finance, in its capacity as Rule 3 adviser to Liberty, considers the terms of the offer to be fair and reasonable.

"In providing advice to the Liberty board, Cavendish Corporate Finance has taken into account the commercial assessment of the Liberty directors," said the board of Liberty in a stock exchange announcement, adding that the directors unanimously recommend that Liberty shareholders accept the offer.

The store's mock Tudor-style physical location on Great Marlborough Street was put on the block in early March. An agreement to sell the location for £41.5 million ($59.7 million U.S.) was reached about two weeks later. The proceeds from this sale were expected to be used to repay bank debt and other loans, and pave the way for a smooth sale.

Liberty, known for its signature floral prints, has taken many steps in the past months to gain relevance within the fashion community. Its partnership with Target, Liberty for Target, was a wild success, with the items selling out within days of arrival in store.

The company has also arranged for a massive partnership with Manolo Blahnik for the holiday season. The "World of Manolo" will include the store's décor as well as products offered through the holiday season.

Plus, read about the Liberty of London men's ready-to-wear collection launching this fall.