Original Factory Shop and its owners, Barclays Private Equity are understood to have appointed corporate advisors KPMG to complete a strategic review of the business.
According to The Daily Telegraph several private equity firms are interested in buying the business.
The Original Factory Shop has around 78 retail park stores selling clothing, footwear, homewares and cosmetics at knock down prices.
The business was bought by Barclays Private Equity in 2004. Barclays installed former TJ Hughes chief executive George Foster to run the business.
Original Factory Shop sells brands such as Cat and Regatta.