A group of financial investors are reportedly close to securing a deal that will see them take control of Matalan.
According to Sky News, prominent senior lenders such as Invesco and Man GLG have submitted a proposal that will see them put in around £100 million of new funding into the fashion and homeware retailer.
It is also understood that the lenders could reportedly finalise the takeover deal within the next fortnight.
The retailer issued an update on its sale process just three days before Christmas, where it confirmed that it had received bids from several interested parties.
Among those vying for the sale of the firm is former chairman and founder, John Hargreaves, who is currently backed by American investor Elliott Advisors.
Additionally, sources close to the process have reportedly said that lenders were in talks with Nigel Oddy, the chain's interim chief executive, about the possibility of making the role permanent if they succeed in gaining control of it.
The publication also reported that the British retailer was looking to secure a sale before the end of January.
It is also understood that Matalan, which was founded by John Hargreaves back in 1985, is currently facing an imminent deadline to refinance £350million in debt.
One of the UK's largest retailers currently employs more than 11,000 people over 230 UK stores, alongside operating an e-commerce website 50 overseas franchises.
The Daily Record has contacted Matalan for comment.
Don't miss the latest news from around Scotland and beyond. Sign up to our daily newsletter here.
