Billionaire investors the Reuben brothers have taken a holding in fashion retailer Blue Inc, it is understood.

The Reubens, best known for their property interests, have invested £2m in the retailer ahead of a potential flotation next year, the Sunday Times reported.

Blue Inc, run by chief executive Steven Cohen, has bolstered its board and progressed with openings over the last year in preparation for an IPO or further round of investment.

Former M&S and Mothercare executive Mike Rainer joined as finance director last year, and financier Alan Jacobs – associated with both the IPO and sale of DFS – became a non-executive director.

In March, Blue Inc acquired 46 Officers Club stores out of administration bringing its store count to 146.