Sir Richard Branson's Virgin Group has confirmed interest in a potential rescue of crisis-hit mortgage lender Northern Rock.
Under the proposals, a Virgin-led consortium would inject "substantial new equity" into Northern Rock, renaming and rebranding the business as Virgin Money.
Virgin said: "The consortium believes...Northern Rock must seek a complete rebranding to repair its franchise and the confidence of its stakeholders if it wishes to continue as a stand-alone business."
Sir Richard said: "We have the opportunity to make a fresh start and build a renewed, confident future for the business and its tremendous staff as a continuing independent public company."
The Virgin consortium said the Northern Rock charitable foundation would continue to receive a share of the company's profits.
But the current chief executive of the stricken lender, Adam Applegarth, will lose his job if the proposals go ahead. The consortium said Virgin Money chief executive Jayne-Anne Gadhia will head the combined group.
Virgin's team is the first to break cover by publicly confirming its interest in Northern Rock, although US private equity firms including JC Flowers and Blackstone are reportedly considering a bid.
The consortium includes insurer AIG, buyout specialist WL Ross, international hedge fund Toscafund and Hong Kong-based investment group First Eastern Investment.
Sir George Mathewson, the chairman of Toscafund acting as special adviser to the consortium, said: "Virgin provides an important point of stability and also has a recognised ability to execute growth plans."
The crisis at Northern Rock has led to major criticisms of the banking regulatory system. Chancellor Alistair Darling said yesterday he was looking to introduce new legislation to increase protection for savers' deposits.
