Select, the value fashion chain, is close to finalising a deal with a foreign investor which will save the business from administration.
Co-founder Nigel Fisher told Drapers that the company was going through a process of "financial restructuring" after weekend newspapers suggested Select was on the verge of collapse. He said: "We are in the middle of negotiations with a foreign investor and I expect that to conclude within 48 hours. I am very confident this is going to happen."
Select is already thought to have begun negotiations with suppliers about payment for its goods and the foreign investor is already thought to have completed due diligence.
Select suffered a difficult 2007 owing to unseasonal weather patterns and the slowdown in consumer spending, which has thrown its future into doubt. Fisher said: "2007 was a difficult year. Up to May trading was good but may to September was disastrous. This was made worse by some problems we had with merchandising and distribution in the company. The Sale period post-Chrsitmas has been very good."
Select is one of a number of chains thought to be struggling to survive post-Christmas. The future of both Dolcis and Stead & Simpson has been questioned in the last week.