Bankrupt retailer Spiegel Inc has renewed talks with potential buyers of its Eddie Bauer clothing chain according to The New York Post.

Eddie Bauer, which consists of 400 stores and a catalogue, was first put up for sale in April 2004 and was expected to fetch up to $1 billion.

However, The New York Post said offers were in fact as low as $600-$700 million.

Apparel giant VF is rumoured to be one of the potential bidders for the company.