Frasers Group PLC (LSE:FRAS) is in talks to sell Missguided, its women's clothing label, to China’s Shein for an undisclosed sum.
According to a report from Sky News, the two sides are in "detailed negotiations" and have been in talks for several weeks.
Founded in 2012, Shein operates in more than 150 countries and is now headquartered in Singapore.
It is widely reported to be considering a US initial public offering (IPO).
A recent funding round valued the business at about US$66 billion.
Shares in Frasers, founded by billionaire shopkeeper Mike Ashley, who is also its leading investor, barely flickered in early trade, nudging 3.5p to 808p.
Frasers owns a number of brands and outlets including Sports Direct, Flannels and the House of Fraser department stores chain.