The administrators of UK luxury fashion brand Aquascutum today (2 May) confirmed they have entered exclusive talks to sell the brand to a subsidiary of Hong Kong-based YGM trading after financial commitment from YGM Trading saw off competition from more than 70 bidders.

YGM Trading holds the licence for the brand in 42 countries across Asia. The exclusivity agreement with administrator FRP Advisory relates to an offer to acquire the on-going business and assets with completion set to take place by 9 May.

Administrators FRP Advisory, said in support of the exclusivity period, a financial commitment has been obtained, and both parties are now focused on dealing with the necessary legal documentation to effect the sale.

The acquisition will not come as a surprise to industry figures, which agreed that a sale to any buyer, other than YGM Trading, would be difficult given its dominance over the brand in Asia – a key growth market

Aquascutum went into administration in the middle of April after owners Harold Tillman and Belinda Earl failed to stem losses at the business.

FRP Advisory said they have received significant interest in the business and its assets, totalling in excess of 70 interested parties.

Separately, the administrators are continuing negotiations to find a buyer for the manufacturing plant at Corby, Northamptonshire, which was closed earlier this month. No deadline has currently been set for this process.

James Eden, boss of menswear business Cooper & Stollbrand, which emerged as a bidder for Aquascutum and its Corby plant days after the British heritage business’ collapse, said he was “extremely disappointed” and “devastated” with YGM’s exclusivity. He said: “We put in a bid over and above the asking price for the business and the Corby factory, and we’ve now been told that the administrator in talks with YGM. I am fairly confident I was the only bid that had genuine interest in keeping open the Corby factory.”

Eden expressed concern that YGM would move Aquascutum production out of the UK. He will still bid for the Corby plant, though this will depend on discussions with YGM. “We’ll have to assess their commitment to British manufacturing,” said Eden.

Andrew Chan, executive director and general manager, Aquascutum International and YGM Marketing, said that YGM would “look to retain the business in the UK”.

He said: “We will try our best to retain the business in the UK. We will look and review fairly and objectively all the staff, all the leases and every part of the business that is currently ongoing. We think that Aquascutum is a British brand with heritage and will definitely continue that. It’s a key selling point for Aquascutum to retain heritage.”

The joint administrators say they have been “very encouraged by the significant interest shown in the business  over the last two weeks and have chosen to proceed with the offer that delivers the best outcome for the creditors of Aquascutum,” said FRP joint administrator Geoff Rowley.