Online retailer MandM Direct has announced its intention to float.

The Herefordshire company was founded in 1987 and has grown to be a £120 million-turnover venture.

It sells fashion, sportswear and equipment via local websites in the UK, Ireland and several mainland European countries and the float on AIM is expected to value the company at between £140 million and £170 million.

In a statement to the stock exchange today, MandM Direct said it had launched in three new markets over the past six months and was intending to target further territories over the next two years.

The primary proceeds of approximately £12.5 million will be used to repay the company's existing debt, transaction related fees and provide additional flexibility to help accelerate its growth strategy.

The Leominster company becomes the latest West Midlands company to float this year following the move by Patisserie Holdings , the Birmingham-based owner of Philpotts and Druckers.

MandM's chief executive Jonathon Brown said today: "We believe that MandM Direct's success is founded on offering strong brands at discounts of up to 75 per cent off RRP.

"This proposition is underpinned by long-standing trading relationships with brand owners for whom we are a highly regarded solution to moving excess stock while seeking to protect their brand image.

"It has enabled us to build an active customer base of 1.3 million households.

"We are well positioned to benefit from the trends towards online retail and have a clear strategy to develop our UK and to expand our European businesses.

"This listing represents an exciting stage in our development and will give us the opportunity to further accelerate our growth."

The board of directors will be chaired post-float by Alan White, the former chief executive of N Brown Group which owns fashion brands Jacamo and SimplyBe among others.

Private equity firm ECI invested in MandM Direct in 2004 and exited three years in a £86 million deal which saw TA Associates buy in.