The chief executive of FTSE-listed Sussex perfumes and cosmetics firm Creightons has stepped aside to launch a management buy-out, the Argus has learned.

If Bill Hamilton successfully buys the business, a company trying to get on to the stock exchange could acquire Creightons' name and listing and send its floundering share price soaring.

Mr Hamilton has been kept on as chief executive but has given up the day-to-day running of the business as required by stock exchange rules.

Former perfumeries boss Bernard Johnson has become acting general manager.

Mr Johnson revealed Creightons had dropped proposals to sell off its perfumes division.

He said: "We took offers but none have been accepted. We're not looking at selling that operation at this point."

Creightons company secretary Nick O'Shea said: "Mr Hamilton is involved in the management buy-out so he has had to step aside from running the company.

"If anything happens which is notifiable, we will notify the stock market."

He did not say whether Mr Hamilton was buying company assets or taking the whole company private.

A management buy-out was discussed at the annual general meeting in February, when the firm revealed it was running out of money.

Bill Hamilton joined Creightons last July. The firm raised £1.3 million in a rights issue earlier this year.

A full explanation of Creightons' plans is expected when it releases its accounts in September.

Stock market analyst Stewart Dalby said: "I await the September announcement with great interest.

"Is Mr Hamilton just buying an asset or the whole company? If he is just buying out an asset, then what happens to the quoted Creightons shell?

"Does the money raised in the rights issue go with the assets or stay with the quoted company?"