Homebase-owner Hilco Capital is circling troubled jewellery retailer Links of London.
The vulture fund is among a number of bidders for Links, which is trying to secure a rescue deal in the coming days, according to Sky News.
A deal is likely to be implemented through an insolvency process, the broadcaster reported.
Hilco specialises in buying embattled retailers and oversaw the collapse of HMV last year.
Last month, Links owner Folli Follie confirmed it had drafted in advisers to weigh up a sale of the group.
The Greek jewellery chain said it had appointed Deloitte and Savigny Partners to look into sale options.
Read more: Links of London hoping for rescue offer
Links has recently been tipped to become the latest in a string of retailers to consider a company voluntary arrangement, a controversial insolvency process used to slash rents and close stores.
The jeweller has already closed 15 US stores as part of a restructuring plan to avoid insolvency.