Luxury retailer PPR’s Redcats division is thought to have begun exclusive negotiations with investment fund Alpha about the sale of its children and family division, which includes the Vertbaudet and Cyrillus brands.

The division was put up for sale in October. In 2011, Vertbaudet generated sales of E252m (£204.9m), while Cyrillus achieved turnover of E98m (£79.7m).

The decision is part of PPR’s plans to divest non-core businesses in order to focus on its profitable luxury brands.