Retail store operator Goody's Family Clothing said the recently received acquisition bid from private investment firms Prentice Capital Management and GMM Capital tops that offered by original suitor Sun Capital Partners.

Goody's will accept the raised bid offer of $8.85 per share from the two firms unless Sun Capital increases its offer for the business before Thursday.

The retailer has also confirmed it has received a second competing bid, and is in talks with the bidder. However, discussions with the third bidding party will be axed if a higher offer is not made by the time Goody's seals a deal with Prentice Capital and GMM.

Goody's entered into a preliminary deal with affiliates of Sun Capital on 7 October at a cash price of $8.00 per share.

Goody's is a retailer of mid-priced priced family apparel in 371 stores in the US.