Private equity company KKR has been exclusively negotiating to acquire a majority stake in French fashion brands Claudie Pierlot, Maje and Sandro, said the source close to the deal.

According to the source, KKR would get an enterprise value of 650 million euros by acquiring the brands, which are all partially owned by LVMH chief executive Bernard Arnault.

The clothing sector saw growing interest in the auction of the three brands, which are popular for their affordable yet fashionable ready-to-wear garments partly due to a dearth of similar brands made available to investors.

The brands have about 500 stores and are seeking for growth in markets like Asia following a dramatic increase by more than 20% in its sales.

Rivals of KKR in the auction process include Carlyle, Swire Pacific and Eurazeo.

A spokesman for Arnault and officials at KKR were not available for comment on the matter.