Next plc is set to snap up prominent but failing retailer Cath Kidston as it looks to further expand its portfolio of wholly owned brands.
The FTSE-100 firm, which will be releasing preliminary full-year results tomorrow, could wrap up a deal for the homeware brand as early as today, according to Sky News.
Cath Kidston was put up for sale by Hilco Capital, a specialist retail investor, which bought the brand less than a year ago.
Prior to that, the company was bought out of administration by Baring Private Equity Asia, which resulted in the loss of nearly 1,000 employees and 60 UK stores.
Should Next push through this deal, it would be the latest addition to its portfolio of previously failing brands.
Next moved quickly to snap up online retailers Joules and Made.com last year out of administration.
It also made bids for Topshop but pulled out of an auction which ultimately led the brand to be sold to ASOS.
The retailer is expected to report record pre-tax profits of £850mln tomorrow, according to forecasts by City analysts.
However, despite an improving consumer sentiment, JP Morgan believes the outlook for retailers remains challenging.