New Look, the high street fashion retailer, is reportedly in talks with Asda about a possible takeover deal.
If the deal goes ahead, it would see New Look become part of the Walmart-owned supermarket chain, with over 600 stores across the UK.
New Look has been struggling in recent years, and has been attempting to turnaround its fortunes by closing stores and cutting costs. However, it is thought that a takeover by Asda could be the best way to secure its future.
Asda is already the UK’s second largest retailer, and adding New Look to its portfolio would help it to close the gap on market leader Tesco.
The talks are at a early stage, and it is not yet clear if a deal will be agreed. However, if it does go ahead, it would be a major shake-up for the UK retail sector.