Modella Capital is understood to have received separate bids from two parties to acquire The Original Factory Shop as a going concern.
However, no deal has been agreed, meaning about 1,100 jobs remain at risk.
The interest led Modella to extend a notice of intention to appoint administrators for TOFS, which it originally filed in early January.
A Modella spokesperson said: “Modella never comments on market speculation, but we continue to talk to interested parties.”
Modella said on 5 January it had no choice but to initiate insolvency proceedings for both TOFS and Claire’s Accessories thanks to an “extremely challenging” climate on the high street.
The private equity firm bought variety discounter TOFS in February last year and Claire’s in September.
Modella also bought WH Smith’s high street arm in June last year and rebranded stores as TG Jones.
TOFS entered a company voluntary arrangement in April, in which stores were closed, its head office relocated from Burnley to Bolton, and distribution handed to third party Unipart.
Its estate has shrunk from about 180 stores when Modella acquired it to about 140.
TOFS opened its first store in 1969. It sells discounted branded clothes, homewares and other general merchandise, plus a range of fmcg including toiletries and snacks.
It favours high street locations in smaller towns, where it prides itself on offering a ‘local shopping experience’.
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