Casual dining chain, Ed's Easy Diner could be sold off shortly for as little as £15m, in the form of a pre-pack administration, having been on the market last year for £90m.
The sale could be announced in the coming days after the group suffered a trading slump over the summer, sources told The Times.
The former owner of PizzaExpress and Strada, Luke Johnson has tabled a bid through his private equity firm, Risk Capital Partners, for the American-themed chain, according to Sky News.
Johnson's interest in Ed's has pitched him against RCapital, a former owner of Little Chef, the roadside diners, and an unidentified bidder.
The chain's auction is being overseen by corporate financiers at KPMG.
