Clothing giant Kellwood Company was on Monday reported to be in exclusive talks with music mogul Russell Simmons over plans to buy his Phat Fashions urban apparel company.

The New York Post, quoting a person familiar with situation, said a deal was signed last week and Kellwood now has around two months to conduct due diligence before making a formal offer.

Kellwood currently produces two Phat Fashions lines under license, Run Athletics and Def Jam University. Phat Fashions enjoys annual sales of around $200 million,

Both companies have so far declined to comment on the situation.