Fashion giant Next is in talks with private equity house Elliott Advisors regarding the sale of its 51% stake in Reiss, according to Sky News.

Elliott Advisors is reportedly “among a group of prospective bidders” circling the fashion brand after it was revealed last week that Next is considering the sale of its stake.

It is understood that the deal would value the fashion brand at more than £500m, based on EBITDA for the current financial year.

It remains unclear whether a formal bid will be made, and at least three other parties are reportedly involved and have expressed an interest.

According to Sky News “one factor leaning in Elliott’s favour” is that one of its executives Paul Best was “instrumental” when Warburg Pincus acquired a majority stake in Reiss in 2016.

Despite the potential buyer speculation, sources told Sky News that “it remains possible that Next and Warburg Pincus will decide not to sell Reiss”.

Next, Reiss, Warburg Pincus and Elliott Advisors did not provide a comment.