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Next, the high street fashion giant, is plotting a swoop on Russell & Bromley, the 145 year-old shoe retailer.
Sky News has learnt that Next, which has a market capitalisation of £16.6bn, is among the parties in talks with Russell & Bromley's advisers about a deal.
City sources said this weekend that a number of other suitors were also in the frame to make an investment in the chain, although their identities were unclear.
The talks come amid the peak Christmas trading period, with retail bosses hopeful that consumer confidence holds up over the coming weeks despite the stuttering economy.
Russell & Bromley confirmed several weeks ago that it had drafted in Interpath, the advisory firm, to explore options for raising new financing for the business.
The chain trades from 37 stores and employs more than 450 people.
It was formed in 1880 when the first Russell & Bromley store opened in Eastbourne.
Seven years earlier, George Bromley and Elizabeth Russell, both of whom hailed from shoemaking families, were married, paving the way for the establishment of the business.
Russell & Bromley is now run by Andrew Bromley, the fifth generation of his family to hold the reins.
Billie Piper, the actress and singer, is the current face of the brand as it tries to appeal to younger consumers as part of a five-year turnaround plan.
If it materialised, an acquisition or investment by Next would mark the latest in a string of brand deals struck by Britain’s most successful London-listed fashion retailer.
In recent years, it has bought brands such as Cath Kidston, Joules and Seraphine, the maternitywear retailer for knockdown prices.
Next also owns Made.com, the online furniture retailer, and FatFace, the high street fashion brand.
Under Lord Wolfson, its veteran chief executive, Next has defied the wider high street gloom to become one of the UK's best-run businesses.
Its Total Platform infrastructure solution has enabled it to plug in other retail brands in order to provide logistics, e-commerce and digital service capabilities.
Both Victoria's Secret and Gap also have partnerships with Next using the Total Platform offering.
It was unclear whether any deal between Next and Russell & Bromley would involve acquiring the latter's brand outright or making an investment into the business.
This weekend, Next declined to comment, while neither Russell & Bromley nor Interpath could be reached for comment.
In a statement in October, Mr Bromley said: “We are currently exploring opportunities to help take Russell & Bromley into the next phase of our ‘Re Boot’ vision.
“Since the announcement of the ‘Re Boot’ earlier this year we have made significant progress, positioning us well to build on our momentum and continue along our journey.
“We are looking forward to working with our advisory team to secure the necessary investment to accelerate our expansion plans.”
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