DFC Global the owner of Dollar UK which includes the  Money Shop brand has been put up for sale amid a squeeze on profits following payday fee caps, according to Sky News sources.  DFC Global has appointed the US investment bank KBW to sound out potential buyers for the business.

Dollar UK brands also include the online lenders Payday UK and Payday Express. Its owner, DFC Global, is understood to have decided to begin an auction process in recent weeks, and sources in the private equity industry said a number of prospective buyers had already been sounded out. Dollar UK is thought to have annual revenues of roughly £100million, and trades from 300 Money Shop outlets across the country. It also owns pawnbroking brands, including Suttons & Robertsons and Robert Biggar.

DFC, which says it has more than 10 million customers, also operates in Canada, Finland, Poland, Romania, Spain, Sweden and the US. It is controlled by the private equity giant Lone Star.