Sky News has learned that Frasers Group is close to buying the stock and intellectual property assets of PBK from THG, the London-listed online nutrition and beauty retailer.

City sources said a deal could be finalised and announced later this week.

The deal will not be material in financial terms for either party, but will come in the wake of THG deciding to close or sell a number of its non-core subsidiaries.

PBK was founded in 1998, and was bought by THG in 2013 and absorbed into the then privately owned group's lifestyle division.

It sells cycling clothing and accessories produced by more than 100 specialist brands, including Adidas, Raleigh and Michelin.

The acquisition of PBK is expected to be handled through Frasers' Evans Cycles subsidiary, which Mr Ashley's group bought in 2018.

That deal saw a substantial chunk of Evans' standalone shops permanently closed.

Mr Ashley no longer runs Frasers in an executive capacity but remains its biggest shareholder.

Frasers and THG both declined to comment on Monday.