Style Group Brands, which owns Jacques Vert, Eastex and Precis, is reportedly in rescue talks with a consortium of retail investors fronted by Harold Tillman.
The three investors – Tillman, Sandeep Vyas and Haseeb Aziz – are planning to buy the business in a pre-pack administration, Sky News reported.
It is understood a deal would happen by the end of this week.
In March, Style Group Brands appointed KPMG to as a consultant to “work on the numbers” as part of plans to get the business back on track under new chief executive Shaun Wills.
It has been since looking for new investors to avoid falling into administration.
Style Group Brands employs approximately 1,900 people.