Textiles tycoon Alshair Fiyaz has teamed up with Danish investment fund Solstra Capital to submit a second round bid for Peacocks.
Bids for the value retailer, which went into administration last month, are due in today.
Fiyaz, whose family wealth is estimated at £3bn, is understood to be working with the Peacock’s management team, including managing director Tim Bettley, according to reports.
The billionaire owns Danish department store Magasin Du Nord, which he leases to Debenhams.
If Fayiz’s bid is successful it could help save up to 7,500 jobs at the 600 store retailer.
Peacocks collapsed under its debt last month after its banks, led by Royal Bank of Scotland, refused to invest more money into the retailer. KPMG is acting as administrator.
Six parties are understood to have submitted a bid for the retailer, although it is thought that two will not go through to the second round of bidding.