The owner of Jaeger is understood to be exploring a sale of the company, following the departure of chief executive Colin Henry last month.
At the time, Better Capital appointed turnaround consultancy AlixPartners as a financial advisor, but now the private equity firm has decided to pursue takeover discussions, a source close to the situation told Sky News.
AlixPartners is said to be overseeing the talks and responding to incoming interest from unnamed buyers.
Reports suggest Henry left following a difference of opinion with Better Capital, which wanted to focus on the more mass-market end of the high street while he believed that this could damage the upmarket quality of the brand.
Following his departure, Better Capital said: “The business will continue in its strategy to reposition itself as a premium retailer in the current consumer environment while restoring its iconic brand.”
In the year to March 1 2014, Jaeger’s like-for-like sales rose 10% and losses after tax narrowed to £9.9m from £12.6m the year before.