Marks & Spencer (M&S) and owner B&Q have expressed interest in taking over dozens of stores operated by Homebase, the DIY chain which fell into administration this month.
Sky News has learned that M&S and Kingfisher are among the retailers circling the remaining Homebase park of almost 50 outlets, ahead of deals closing on Friday.
The two companies are reportedly preparing offers for 20 to 25 sites, which suggests the possibility of saving hundreds of jobs.
Last money: The most and least affordable cities to buy a house
Around 2,000 jobs were put at risk by the collapse of Homebase, and administrators are understood to have been working hard over the past fortnight to save as many of them as possible.
Property industry sources said Home Bargains, the privately-owned homewares retailer, was also close to acquiring a small number of Homebase sites.
About 70 stores of the DIY chain, as well as its brand and e-commerce operations, were sold to owner of The Range in a pre-pack offer.
The Range, founded by Chris Dawson, has also hired around 1,600 staff from Homebase.
Teneo had conducted a sales process for Homebase prior to his appointment as administrator.
Read more on Sky News:
Direct Line shares soar as it rejects takeover offer from British rival
Latest sign of struggling auto industry as production falls again
The city watchdog’s ‘name and shame’ compromise
The process comes at a time when retailers face increasing cost pressures following the Budget, with Kingfisher and M&S warning of the impact in recent weeks.
M&S and Kingfisher declined to comment.