The Frasers Group, owners of Cavendish House in Cheltenham and Sports Direct, is in talks over a potential rescue package for Debenhams.

Winding-up proceedings began at the troubled retailer last week as administrators failed to find a buyer, putting around 12,000 jobs at risk.

Frasers owner Mike Ashley, chief executive of Sports Direct and owner of Newcastle United, brought House of Fraser from administration in 2018.

And the group has confirmed weekend reports that it was in talks about a potential deal.

A company statement said: "While Frasers Group hopes that a rescue package can be put in place and jobs save, time is short.

"There is no certainty that any transaction will take place, particularly if discussions cannot be concluded swiftly."

The statement said the matter was complicated by the Arcadia Group, the biggest concession holder at Debenhams, entering administration last week.

Mr Ashley was a previous major shareholder of Debenhams and put in an offer for the department store chain, believed to be around £125million, which was dismissed as too low soon after it entered administration for the second time in April.

Debenhams has continued trading online and at most of its 124 shops, including Gloucester, since it announced the start of the liquidation process as it looks to clear remaining stock.