Ted Baker PLC (LSE:TED) said New York-based private equity firm Sycamore is one of the parties involved in its formal sales process.
The high-street retailer previously rejected two unsolicited bids from Sycamore, claiming they significantly undervalued the London-listed fashion chain.
The most recent offer was 137.5p per share, just shy of £200mln.
Since then, another company expressed interest in bidding for Ted Baker.
Terms of that offer were not revealed though following the approach the fashion group decided to start a formal sale process
"There can be no certainty that an offer will be made, nor as to the terms on which any offer will be made," Ted Baker said in a statement.
An earlier deadline of April 15 was set for Sycamore to announce whether it intended to make an offer or not.
Baker is in the middle of a turnaround plan under its chief executive Rachel Osborne after a series of profit warnings, governance issues and the effect of the Covid-19 pandemic.
The retailer operates 377 stores worldwide.
Shares of the company were up 3% at 152.2p.