New Look has entered exclusive talks to sell its troubled French business Mim to Far Eastern conglomerate Asia Global.

The high street chain revealed last month that it was exploring strategic options for its loss-making business, which runs more than 300 stores across France.

At the same time, the retailer said it was forced to take a £64.2m writedown of Mim’s net assets. This led to New Look posting a £55m statutory pre-tax loss in the year to March 29 against a £3.1m pre-tax profit the prior year.

Sky News said that a statement issued on Friday to lenders, bondholders and investors in its other debt instruments, read: “New Look confirms that it has received an indicative offer from Asia Global for Mim, its standalone French retail business, and has entered into a period of exclusive discussions with them.

“Negotiations are at an early stage and there can be no certainty that a transaction will be concluded. A further announcement will be made in due course as appropriate.”

New Look declined to comment.