Mike Ashley's Frasers Group is the frontrunner to buy Harvey Nichols, the Knightsbridge-based luxury department store chain, that's .
A deal could be struck through a pre-pack administration process early next week, according to a Sky News report.
Harvey Nichols has been in a sale process since owner Sir Dickson Poon appointed FTI Consulting in June to explore options after 35 years of ownership, with the retailer under pressure from years of losses and mounting debts.
Prospective buyers have been told the business would need tens of millions of pounds in medium-term funding to support a turnaround, even as the likely transaction value has been put at well under that figure.
Harvey Nichols initially resisted Frasers' involvement after luxury suppliers raised concerns about Ashley, before saying it was obliged to let the group participate alongside other bidders including Next and Modella Capital.
The pursuit extends Frasers' run of high-street acquisitions, potentially handing Ashley a luxury retail platform anchored by the Knightsbridge flagship and its regional stores.
In London, on Monday, Frasers shares were down 0.56% to 3.5p.
