Alice + Olivia LLC, the U.S contemporary apparel company known for its playful designs, is exploring selling an equity stake, according to people familiar with the matter.

New York-based Alice + Olivia, which has annual sales of around $200 million, is working with investment bank Sage Group LLC and has already collected indications of interest from potential investors, the people said this week.

The sources asked not to be named because the matter is confidential. Alice and Olivia did not respond to requests for comment. Sage declined to comment.

Alice + Olivia is owned by Stacey Bendet and Andrew Rosen. It could not be immediately established who among them would be selling equity in the company, or if the company would issue new shares in the potential stake sale.

Bendet, a University of Pennsylvania graduate with a passion for creating fashionable pants, partnered in 2002 with Rosen, co-founder of American apparel company Theory, to launch Alice + Olivia.

Rosen's investing track record includes brands Proenza Schouler and Rag & Bone.

Alice + Olivia sells at over 800 high-end boutiques and department stores. It has twelve free-standing boutiques located in New York, California and Connecticut.

Its clothes often have playful flourishes such as cutouts, beading, bold prints or flared skirts. They were featured heavily in the U.S. TV show Gossip Girl and have been worn by celebrities including Blake Lively and Taylor Swift.

Premium contemporary brands such as Alice + Olivia have been hurt in recent years by the rise of more affordable brands such as the Spanish retail chain Zara. Clothing line Vince Holding Corp, for example, has seen its stock price more than halve since its 2013 public offering.

Still, there have been a number of private equity deals in the space. In 2014, Sun Capital-backed Kellwood Holding LLC, acquired its latest contemporary apparel brand, Parker. In 2013, private equity firm General Atlantic LLC bought a minority stake in sportswear brand Tory Burch LLC.