The founder of women's fashion retailer New Look Group on Monday revealed he is in talks with potential financial backers over a possible bid for the company.

Tom Singh, who last month said he was examining options regarding his family's 28 per cent stake in the country's third largest women's apparel chain, announced he is in negotiations with possible backers over a bid.

The Dorset-based company operates around 500 stores and city experts say itis likely to catch the eye of a wide range of investors with some suggesting chief executive Stephen Sunnucks may even lead a management buy-out.