The owner of footwear firm Dr Martens is reportedly among the investors looking to buy a stake in high street chain Reiss.
A decision about a preferred bidder is expected to be made within weeks and a deal will be signed later this year.
In July it was reported that Reiss, who founded the business 40 years ago and remains its owner and managing director, had appointed investment bank Morgan Stanley to review options for growing the business internationally. It was mooted that the sale of a minority stake to outside investors for the first time may be an option.
Permira bought a majority stake in Dr Martens in 2014.
Reiss reported a 331% increase in profit after tax to £6.9m for the year to January 31 2015, driven by full-price and online sales. Sales increased 13.2% to £111m for the year, while EBITDA almost doubled, up 94% to £20m.