The high street shain Mothercare is understood to be closing in on acquiring the brand of Blooming Marvellous, the maternitywear retailer, and possibly a few of the remaining Blooming Marvellous shops.
Matalan, the value fashion retailer, had examined a possible deal for ailing Blooming Marvellous but decided against it.
The company collapsed in January last year but was bought out of administration a month later by a group of investors including Elaine McPherson, the owner of the Ethel Austin fashion stores.
Blooming Marvellous had hit trouble after its Icelandic investor Arev walked away from its investment in the group, which has 14 branches.
Mothercare and Matalan declined to comment. Blooming Marvellous did not return calls.