Retail restructuring and turnaround specialist Hilco is among the potential buyers of the troubled British arm of Toys R Us.
Representatives of Hilco Capital met Toys R Us UK executives earlier this week, according to Sky News.
Hilco was expected to send a letter of intent in advance of a Thursday deadline to express their interest in buying the embattled Toys R Us.
Hilco is one of a number of interested parties considering snapping up Toys R Us, it is understood.
The loss-making UK division of Toys R US has raised fears about the livelihoods of more than 3,000 staff.
The race to conclude a deal highlights the scale of the difficulties Toys R Us faces, coming little more than a month after the retailer agreed a CVA designed to secure its future.
All of Toys R US’s European businesses are up for sale. It has 236 stores outside the UK in 10 countries.
Sky’s sources said the UK faced the most imminent threat of bankruptcy. Unless it can meet a cash call at the end of the month, administration would follow unless new financing was found.
It is not certain that Hilco will proceed with a formal offer for Toys R Us.
Hilco bought HMV out of administration in 2013, giving the famous music retailer a new lease of life.