Carphone Warehouse founder David Ross is reportedly in talks with Jigsaw founder and controlling shareholder John Robinson about a rescue deal of the womenswear retailer.
According to Sky News, Ross might invest several million pounds in Jigsaw, which is said to need at least £10 million as a reprieve from its financial woes.
Jigsaw first started seeking a buyer in October last year, and has since attracted the interest of Aurelius Advisers and South African fashion group Foschini, which already runs British fashion retailers Hobbs, Phase Eight and Whistles.
KPMG were also brought in to assess offers for Jigsaw and it could now be close to reaching a deal with Ross, who has a portfolio of property and business investments.
Sky News also reported that a new debt provider has been lined up to replace current lender Barclays.
Although Jigsaw recorded a sales uptick in the lead-up to Christmas, higher import costs has still negatively affected the business.