The retailer is bidding to untangle the brand from the wreckage of Sir Philip Green’s Arcadia empire in partnership with a US hedge fund, but faces stiff competition from the likes of Barneys department store owner Authentic Brands and JD Sports, as well as rumoured interest from Mike Ashley’s Frasers Group. 

If successful, Next and hedge fund Davidson Kempner plan to appoint external managers to form a new joint venture to run Arcadia, with Next taking a minority stake, according to The Sunday Times.