Ted Baker shares have swelled after it was reported that Reebok owner Authentic Brands may win a takeover battle for the fashion chain.
Shares were up by as much as 3.1 per cent in early trading on Monday.
This followed a report by Sky News that Ted Baker was eager for Authentic Brands – which owns an array of fashion and lifestyle brands including Juicy Couture and Forever 21 – to be its preferred bidder.
The two companies could ink a £300m ($379.35m) deal, in a public to private agreement.
A retail executive told Sky News that Authentic Brands was being advised by Bank of America on the talks.
Although it is not in formal exclusivity, the source said a formal deal could be signed within weeks, Sky News reported.
Last week, private equity giant Sycamore pulled out of the bidding war for the brand.
The retailer revealed it had received several revised takeover proposals from other parties.
“The most urgent task for the new owner of Ted Baker is to revitalise the brand’s fading image,” Alex Smith, global sector lead at Third Bridge said.
“Our experts say that there are very few brands that have the sheer personality of Ted Baker and the value of a refresh could be huge,” Smith added.
“Hybrid working gets more entrenched every day, this leaves a big question mark over the future demand for formal workwear. Ted Baker is wisely moving away from formal occasion wear towards everyday.”