Aquascutum could be sold to its Chinese distributor after the luxury brand’s Japanese owner Renown rejected a management buyout.

According to reports Renown is in talks with Hong-Kong based YGM Trading which currently holds the licence for Aquascutum in China, Hong Kong and Taiwan.

The move has raised concerns over the future of the 120-employees at Aquascutum’s factory in Corby, Northamptonshire.

For the last 12-months chief executive Kim Winser, who had been brought in to try and turn around the business, has been trying to negotiate a management buyout. As revealed by Retail Week on Friday Winser left the business after her bid was rejected.

Winser has been approached to become the next chief executive of Italian fashion house Gianni Versace according to The Sunday Telegraph.