Matalan founder John Hargreaves is teaming up with Cafer Mahiroglu, owner of Select Fashions, to rescue BHS.
Hargreaves has formed a consortium with the Turkish entrepreneur to rescue the struggling retailer which went into administration last month putting up to 11,000 jobs at risk.
According to The Telegraph, the entrepreneurs plan to make an announcement by 5pm today.
Other bidders interested in snapping up the embattled retailer include Philip Day, owner of Edinburgh Woollen Mill and Peacocks, and Mike Ashley's Sports Direct.
Preston property tycoon Yousuf Bhailok pulled out of the race yesterday after he was told to increase his offer.
Administrators at Duff & Phelps have told interested parties that they would have to purchase all 164 of BHS’ shops.
Mahiroglu rescued Select Fashions, the discount women's fashion retailer, in 2008. Stars from ITV reality show The Only Way Is Essex are seen wearing clothes from the brand after he signed a multi-million pound deal with the television network.
Hargreaves, on the other hand, is a docker’s son who left school at 14 and founded Lancashire-based Matalan in 1985. In February the fashion chain entered Lloyds Banking Group’s special measures division after a fall in profits. This year’s Sunday Times Rich List revealed his family’s wealth has halved to £500m from £1bn last year.
Sir Philip Green sold BHS to twice-bankrupt former racing driving Dominic Chappell for £1 last year. The retail tycoon is being investigated by the Work and Pensions select committee as BHS built up a £571m pension deficit under his leadership.