Whittard of Chelsea, which faced bankruptcy late last year, was bought from administrators, Ernst & Young, by funds advised by EPIC Private Equity last December 23. 2009.

The new owners said they plan to close loss making stores and concentrate of the core business and profitability by improving product, service and environment.

However, sources say that Sapat International, a Mumbai-based tea company, may be discussing a possible buyout of the company with EPIC.

"We are looking at a couple of premium tea companies in UK and other markets," Nikhil Joshi, Sapat managing director confirmed, without naming names. "Acquisitions are essentially part of our strategy to establish a presence in the premium-end of the international tea market."

Sapat is also discussing a joint venture project with another UK company, Taylors of Harrogate, which is looking to penetrate the Indian market.

Whittard's former owners Baugur bought the 122-year-old, 130-store tea and coffee specialist retail chain in Dec. 2005 for US$$31.8 million.