Jigsaw, a Womenswear chain, could likely receive a reprieve from the financial woes of the company as David Ross, the co-founder of Carphone Warehouse, lends his backing.
According to Sky News, John Robinson, the controlling shareholder of Jigsaw, is holding discussions with Ross who is a long-standing acquaintance regarding a rescue deal.
Ross could likely make an investment of several million pounds in the troubled company, which is said to require at least £10m in order to ease the pressure.
Although the chain observed an increase in the sales of the company during the run-up to Christmas, it has been affected negatively by higher costs of import.
Last October, the clothing retailer confirmed that it was looking for a buyer, and has drawn in the interest of Aurelius Advisers and Foschini, a South African fashion group which has made aggressive moves into the UK market recently, acquiring Phase Eight, Whistles, and Hobbs.
KPMG was brought in to assess the offers for Jigsaw, and currently, it looks like Jigsaw could be nearer to closing a deal.
In addition to the new investment, some sources informed Sky news that a new debt provider had been lined up in order to replace Barclays, its current lender.
Last month brought a series of bad news for various retailers on the high street, including the fashion retailer New Look, which is due to close some of its stores. M&S has also revealed the closure of a number of its stores, affecting hundreds of jobs.
Even the profits of the mighty H&M have dropped as it struggles with the growth of online shopping.