The top end of the retail sector has been a hotbed of activity this year for private equity houses, a trend which could shake up activity at the lower end of the UK market, according to a report by PricewaterhouseCoopers (PwC), the accountancy firm.

PwC's corporate finance team is predicting deal activity by private equity houses and private investors to increase by 30% to 50%, particularly in so-called orphan brands, an unloved or neglected brand which is secondary to a company's main business. Stuart McKee, a partner at PwC, said corporates would prefer to sell these brands to buy-out houses rather than see a rival make a success of them.