Casual clothing retailer Cotton Ginny is set to be taken over by a management buy-out, with executives from the company reported to have struck an agreement to secure financing for the deal.

Privately-owned Cotton Ginny operates 280 stores under the names Cotton Ginny and Tabi International. And sources say it is seeking to expand and increase Canada's growing clothing market for bigger sizes.

Its current owner is Guaranty Reassurance. The company was put up for sale in 1996 and again in 1998 but it was never sold because the bids were too low.

The chain made its stamp on the market in the 1980s by offering mid-market cotton basics for women. Its Cotton Ginny Plus range, which occupies about one-third of the floor space in Cotton Ginny Stores, offers casual clothing in the 14-24 size range.