Edinburgh Woollen Mill re-entered talks to buy Peacocks over the weekend, it is understood.

The last-minute return to the table means there are now two bidders in the running to buy part or all of the value clothing retailer, as Indian supplier to Peacocks SKNL is also speaking to administrator KPMG about acquiring a number of stores.

As revealed by Retail-Week.com, Edinburgh Woollen Mill, which owns Jane Norman, pulled out of the bidding process on February 9.

According to the Financial Times, KPMG declined to comment on Edinburgh Woollen Mill’s return to the bidding process.

A deal for the retailer had been expected to be reached early this week.

Peacocks collapsed into administration last month after its banks walked away from a deal to rescue the debt-laden business. The future of Peacocks’ near-600 stores and 9,000 staff hang in the balance.