Following a request for its third bail-out in five years – first reported in The Sunday Telegraph last month – the family is considering selling a stake to an outside investor for the first time.
Dean Street Advisors, a corporate finance firm, has been hired to lead the search.
Monarch and its owners are this weekend working to put together a proposal for a dramatic shake-up that is expected to see Monarch streamline its operations by shrinking its fleet, pulling out of unprofitable routes and scaling back from some bases.
The type of investors considering backing the company reflect the situation it now finds itself in.
Mr Moulton, perhaps best known for failing to gain control of MG Rover in 2000, likes to invest in distressed businesses, with recent examples including Readers Digest and Fairline Boats.
HIG Europe invests in an array of businesses, and has recently been linked with bids for firms such as Hovis.
After struggling during the recession, Monarch returned to the black in the year to October with profits of £5.9m on sales of £957m.
Andrew Swaffield joined as managing director of Monarch Airlines in January and was promoted to lead the whole group a fortnight ago. He believes Monarch, traditionally a charter carrier, can compete on price with easyJet and Ryanair in the scheduled market but beat them on service.
The company has said it wants to “bring back a personal touch” to air travel in Europe. It plans to pull out of long-haul flights and concentrate on providing more city breaks.
The need for further cash was in part prompted by Monarch’s recent order for 30 new Boeing 737 Max 8 airliners. The new fleet will bring down fuel costs by as much as 20pc.
However, conditions in the travel industry have worsened since the autumn, with overcapacity helping to push yields down, and operating costs rising.
Sergio Mantegazza is worth $4.7bn (£2.8bn), according to Forbes magazine. His travel empire was founded by his father Antonio in 1928.
Spokesmen for Monarch, Dean Street and PwC declined to comment.
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