Frasers Group PLC (LSE:FRAS) is reportedly in talks to buy suit tailor Gieves & Hawkes.
Mike Ashely's group is said to be in advanced talks for the brand after its Hong Kong-based owner went into liquidation.
Ashley, who is the majority shareholder at Frasers despite stepping down from the board last month, is said to have been eyeing the falling Savile Row company since September.
Gieves & Hawkes has been owned by Shandong Ruyi Technology since 2012, but it collapsed earlier this year.
In its current form, Gieves & Hawkes has been around since 1974, although the respective Gieves and Hawkes tailoring labels date as far back as the 1700s.
Savile Row, which is renowned for its bespoke and high-quality men’s formal wear, has been hit hard by the pandemic as working habits have changed.
Should Frasers conclude the deal, it would be the latest in a string of high-street buyouts completed by the FTSE100 company.
Aside from some of the legacy brands, such as Kangol and Lonsdale that the retailer purchased 20 years ago under the name Sports Direct, Frasers has acquired Flannels, Jack Wills, Missguided and built stakes in ASOS and Hugo Boss more recently.
Read more: Next and Frasers: why do they buy 'failing' brands?
“It's important to differentiate between the strength of the brands themselves and the underlying financial and operating performance of the businesses,” said Adam Tomlinson, consumer analyst at Liberum.
“Looking at a lot of the names, when Frasers buys Jack Wills or Evans, or when Next takes a stake in Reiss, these are still strong brands that resonate well with consumers.”
“Strong retailers tend to consolidate weaker ones over time, but sometimes that weakness is not the brand but the management or its ownership structure, which means that in the right hands it can flourish.”
Frasers shares fell 4.6% to 756p.