The administrators to Life & Style say they are close to selling the fashion and home chain, created last year by Elaine McPherson from the ashes of her failed fashion chain Ethel Austin.
In a statement of administrator's proposals, financial advisory firm RSM Tenon confirmed they have accepted an offer subject to consent from owner Ms McPherson, business partner Suresh Ruia and the Bank of Baroda - all of whom lent money to the company in the form of debentures.

The report said: "Contract negotiations are at an advanced stage and it is hoped that consent from all debenture holders will be forthcoming."

Ms McPherson is understood to be owed £600,000, while the debt to Mr Ruia and his company Beamfeature are estimated at £6.5m, and with £4.4m owed to Bank of Beroda.

Around 175 parties expressed interest in the company, with several offers ranging from 'stock only' to offers for the business as a going concern.

Life & Style is the third company set up by Ms McPherson to enter administration, after her fashion business Ethel Austin and sister homewares chain Au Naturale suffered the same fate in February 2010.

In March last year, Ms McPherson launched Life & Style after acquiring the trade and assets of Ethel Austin and Au Naturale, with a significant cash injection supplied by Mr Ruia, md of Manchester-based textile business Beamfeature.

When DIY Week contacted RSM Tenon for further details of the offer, a spokesperson said: "Unfortunately we cannot comment on the details of an ongoing administration."

However, shopworkers union Usdaw said in June that it has written to the administrators in response to press reports that Ms McPherson may be trying to regain control of the business once again.

Usdaw national officer John Gorle said: "We are extremely concerned by reports that the previous owner may be involved in taking the business out of administration for a third time.

"During the past three years Usdaw and Life & Style's staff have done everything truly possible to try and help revive the business and make it a success, yet in return the staff have been treated in a truly appalling and cavalier fashion. There have been several occasions when staff have either not been paid or received just a fraction of what they were owed... Reports that Ms McPherson may continue to be involved with the business really are the last straw and we can no longer remain silent on the way this company has been operating."

In the 10 months to January 2011, the company suffered an EBITDA loss of £1.5m excluding exceptional items. However, in the three months to April, its trading position had substantially worsened due to a decline in like-for-like sales and increased store costs, with an EDITA loss of £3.6m.

RSM Tenon was appointed as administrator on June 9.