Textiles producer GHCL is to acquire US textile company Dan River, according to local press reports.

GHCL has reportedly signed an initial agreement to buy Dan River, which makes home and apparel fabrics, for about US$100m.

Dan River, which has annual revenue in the region of $300m, exited Chapter 11 bankruptcy in February.

However, GHCL Limited says it has not so far entered into an agreement with Dan River. "We are in negotiations with various entities that are yet to crystallise," the company said in a statement.