Private equity firm Sun European Partners is thought to be the front runner to acquire troubled mainstream womenswear group Alexon.
Debenhams, which houses a number of Alexon concessions, is also thought to be in the running, and is understood to be working on a deal with restructuring firm Hilco. Sources said that Debenhams would only be interested in certain brands, including Dash and Kaliko.
Womenswear retailer Jacques Vert is also believed to be keen to buy parts of the business.
Investor EW Holdings and private equity turnaround specialist Rutland Partners were also thought to be interested but it is unclear if they are still in the running.
Earlier this month Alexon updated the market, saying that indicative proposals to buy the company were submitted on September 16 and that one of the proposals received was being reviewed by the board before determining the next stage of the sale process. The proposal was at a significant discount to the current share price.
Alexon has suffered in the tough market, issuing a profit warning on September 5. It appointed KPMG to advise on its restructuring options earlier this month.
Sun European, Debenhams and Jacques Vert declined to comment. Alexon declined to comment. Hilco could not be reached.