Mike Ashley's retail empire is in talks with THG over a deal to acquire one of its brands.
Frasers Group, through its subsidiary Evans Cycles, is seeking to acquire the stock and intellectual property assets of ProBikeKit.
BusinessLive reported in April that Manchester-headquartered online retail and software group THG was to close ProBikeKit which it had bought in 2013.
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ProBikeKit was established in 1998 and sells cycling clothing and accessories from over 100 brands including Adidas, Raleigh and Michelin.
Mr Ashley remains the majority shareholder in Frasers Group which is now run by Michael Murray.
The possible deal was first reported by Sky News. THG declined to comment when approached by BusinessLive.
News of the possible deal comes after takeover talks between THG and US private equity firm Apollo ended earlier this month.
THG, which owns the likes of Lookfantastic and Myprotein, said here was "no longer any merit in continuing to engage with Apollo" as the proposed bid undervalued it.
Frasers Group's brands include Sports Direct and House of Fraser while it acquired North West-based Studio Retail, Missguided and I Saw It First last year.
It also recently bought a number of brands from Bury-headquartered JD Sports.
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