Icelandic retail giant Baugur, which last year failed in a bid to buy UK fashion group Arcadia, was on Thursday reported to be in talks to buy high street clothing retailer Oasis Stores.

The Financial Times reported a deal for the operator of more than 160 shops and concessions is likely to value the chain at more than £150 million, and could be announced in the next couple of weeks.

Oasis, which is owned by PPM Ventures, and Baugur have yet to comment on the report.