Jane Norman in rescue talks

Jane Norman, the struggling fashion retailer, is in rescue talks with two new private-equity

investors.

Sun Capital Partners is negotiating with Jane Norman's lenders – led by Royal Bank of Scotland – about buying the debt and taking over the troubled business, while Jon Moulton's private equity business, Better Capital, has also held talks.

Better Capital teamed up with the management team of fashion group Aurora over potentially funding a bid for the 200-store fashion retailer. The management team behind Oasis-owner Aurora, led by chief executive Mike Shearwood, has been interested in the business because there are similarities between Jane Norman and Aurora's existing businesses, including Oasis, Karen Millen and Coast.