Cotton Ginny is to continue to look for a buyer after a deal to sell its stores, headquarters and warehouse to Continental Saxon Group was terminated.

Currently under court-ordered bankruptcy protection, Cotton Ginny's acting chief executive officer, Larry Gatien, on Friday said: "We are in active discussions with alternative prospective purchasers that have extensive retail experience.

"We continue to be deeply committed to finding a way to preserve the jobs of our employees across Canada and we are optimistic that we will complete the sale of a substantial part of the Cotton Ginny chain shortly."

Negotiations with prospective purchasers will be completed before a March 7 court hearing to rule on any sale.

According to the Canadian Press, other parties reported to be interested in Cotton Ginny are Nygard Co, a manufacturer and retailer of women's clothing, and Northern Group Retail Ltd, which owns Northern Reflections and other chains.

Cotton Ginny filed for bankruptcy protection in mid-January, saying it couldn't pay its debts of about $45 million. The company closed about half its 200 outlets in a restructuring designed to attract a buyer.