Sky News understands that Endless, the investment firm which owns businesses such as American Golf and Hovis, one of the UK's biggest bread producers, is working with advisers on an auction.

City insiders said on Friday that talks with a number of bidders were at an advanced stage, with a deal expected to be signed in the coming weeks.

EY, the accountancy firm, is understood to be working on the sale.

Endless, which has turned around a string of businesses and has taken companies such as The Works, the books retailer, to the public markets, bought Victoria Plum in 2019.

It recently injected £3m of working capital in order to support the firm during the sale process.

Endless acquired the company from TPG, the US-based private equity firm, which took a significant cut on the original £200m purchase price.

One source said it was possible that Endless would expedite a sale through a pre-pack administration.

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Although some home improvement and furniture retailers fared well during the pandemic, many have found its aftermath much tougher as inflation has soared.

It was unclear who Victoria Plum's suitors were, although one industry source said that a number of trade players had expressed interest.

Endless declined to comment.