The Chinese company which owns House of Fraser is reportedly in talks to sell a stake in the business to Hong Kong-listed shoe retailer C. Banner which owns Hamleys.

In a statement on the Hong Kong stock exchange, House of Fraser’s Sanpower said that it was exploring a "cooperation arrangement" which would give both businesses “greater bargaining power” with suppliers.

"The company and Nanjing Xinjiekou are currently exploring possible structures for their cooperation and no agreement has been reached in respect of the acquisition of an interest in Highland Group (House of Fraser’s parent company),” a spokesperson for C. Banner said.