Women's clothing producer Kasper ASL Ltd on Wednesday said it had received a $168.6 million takeover offer from Jones Apparel Group – $5m more than rival Kellwood Co has already offered.

The company, which makes women's suits and sportswear under labels such as Anne Klein and Le Suit, said Jones had offered $156m in cash and the assumption of pre-paid royalties projected to be $12.6m at closing.

That bid compares to one of $163.6m from apparel maker Kellwood which offered $111m in cash, $40m in Kellwood common stock, and the assumption of pre-paid royalties of $12.6m.

Kasper is currently under Chapter 11 bankruptcy protection and expects to file its reorganisation plan this Thursday following an auction when it will decide who its new owner will be.