The fate of insolvent French lingerie maker Lejaby is set to be decided at a court hearing on 17 January.

Just before Christmas, the commercial court in Lyon ordered the liquidation of Lejaby but allowed the company to continue trading until 20 January. Candidates for the takeover of Lejaby had until yesterday to improve their offers.

According to sources close to the negotiations, only two of the bids submitted are considered to be viable.

One is from a consortium made up of Lejaby's Tunisian sub-contractor Isalys, Christian Bugnon (the son of Lejaby's former owner), Alain Prost, the ex-CEO of Italy's La Perla and previously MD of French lingerie brand Chantelle, and Italian investment fund Fiduciaria San Babila. It makes provision to retain 194 of the company's 450 staff in France.

The other bid is from French nightwear specialist Canat, which plans to keep 160 workers.