Iceland has attracted interest from two private equity firms interested in acquiring the frozen food chain.
Bain Capital and BC Partners are understood to have been the only two parties to have submitted second round bids before the deadline passed on Tuesday, the Independent reported.
Malcolm Walker, the chief executive of Iceland, will have 42 days to match any final offer accepted by the resolution committee. Walker, along with Iceland management, owns 23% of the business.
Morrisons has not made a bid for the business, but is thought to be keen to take on any stores should they become available, to bolster its convenience offering.
Collapsed Icelandic bank Landsbanki put its 67% share in the business up for sale last year, as revealed by Retail Week. The bank is striving to sell off the rest of its assets - which include Hamleys, Aurum and House of Fraser - before it is wound down.