Orange 21 has confirmed that an independent special committee of its board of directors is in preliminary discussions to buy No Fear's retail stores subsidiary.

The designer could also purchase certain limited related intellectual property rights belonging to the company.

Mark Simo, chairman and CEO of Orange 21, is also the founder, a director and a stockholder of No Fear and therefore is not representing Orange 21 in any discussions on the transaction.

Orange 21 said it expects to seek the approval of its stockholders for any transaction with No Fear, should the Special Committee and No Fear agree to a deal.

The company added that there is no binding agreement or any other binding obligation with No Fear as yet.

No Fear Retail Stores currently operates 40 stores in five states that sell apparel and accessories for the action sports and youth lifestyle markets, primarily under the No Fear brand.