Hilco Captial, the firm that salvaged HMV from administration five years ago is among a small group of bidders plotting out a rescue deal for Toy R Us' UK operations.
Hilco Capital specialises in investments in distressed retailers and reportedly met with Toys R Us executives earlier this week.
The firm is expected to submit a letter of intent ahead of deadline today for prospective bidders to express an interest in acquiring the struggling business, according to insiders.
A number of other, unidentified, suitors are also considering offers, they added.
Sky News revealed on Wednesday that Toys R Us was seeking bids for its loss-making UK arm before the end of this week as fears grow for the fate of more than 3,000 workers.
The entire European operations of the ailing retailer are now on the market, encompassing 236 stores outside the UK in ten countries including Austria, France, Germany and Spain.
One person from Hilco said that it was far from certain that the firm would lodge a formal bid.
The prospects of a solvent sale were unclear on Wednesday, with some potential buyers, possibly including Hilco, likely to wait until toys R Us UK has crashed into administration before trying to pick off the most attractive stores.
Poor Christmas trading has left the British business facing cash flow issues, and one insider said it looked 'close to unsaveable.'