6% increase in like-for-like sales at the menswear chain.
Serial investor Arev is believed to be prepared to part-fund a deal, but is unlikely to be the main investor. One source close to Alexon said the deal process was at an early stage and he did not expect a sale to complete until Christmas.
Envy narrowed operating losses from £3.5 million to £2.9m for the six months to July 28, thanks to improved performance.
Alexon posted pre-tax profits of £6.4m for the period, against £3.4m last year. Like-for-likes fell 2% after lacklustre performance at its Kaliko, Alex & Co and Minuet brands. Dash, Bay Trading and Eastex fared better. But like-for-likes are down 5% for the first seven weeks of the second half.
Chief executive John Osborn said: “The outcome for the year is largely dependent on Christmas trading.”