Mike Ashley’s Sports Direct group could be about to snap up Jack Wills, adding yet another ailing brand to its portfolio.

The preppy fashion brand last month appointed advisers at KPMG to look at all options for its future, including a potential sale, as it suffered from a downturn in trading.

While no deal has been finalised, Sports Direct is understood to be in pole position to take control of Jack Wills via a pre-pack administration. The main rival bid is from the Edinburgh Woollen Mill owner, Philip Day, who is understood to have filed a bid for the brand that would avoid administration, adding it to his suite of retail names, which include Austin Reed and Jaeger.

Jack Wills is facing a cash crunch as its owner, Bluegem Capital Partners, which bought the retailer in 2016, is reportedly unwilling to put in new funds.

Founded in 1999 with a single store in the posh Devon resort of Salcombe, Jack Wills now has 10 standalone stores in the UK and about 100 other outlets, including franchise stores in the Middle East.

It parted company with its founder, Peter Williams, last summer after a falling out over strategy with Bluegem. The brand is currently run by the former Debenhams executive Suzanne Harlow.

If Jack Wills is bought by Sports Direct there are expected to be job losses, according to Sky News, which first reported Ashley’s interest.

The deal is also likely to prove controversial for Sports Direct. Last month it reported substantial losses at House of Fraser, which it bought out of administration last year. It also shocked the City by revealing a potential £605m Belgian tax bill, equivalent to several years of profits. Sports Direct has bought Evans Cycles and Sofa.com out of administration in the past 18 months.

Sports Direct, KPMG and Edinburgh Woollen Mill declined to comment.