TOKYO — Hong Kong-based YGM Trading Ltd. confirmed that one of its subsidiaries has signed a letter of intent for the possible purchase of Aquascutum from Japan’s Renown Inc.

This story first appeared in the May 28, 2009 issue of WWD. Subscribe Today.

In a statement posted on YGM’s Web site as well as the Hong Kong Stock Exchange Web site, the company said it is still negotiating the terms of the deal and no “formal agreement” has been reached thus far.

As reported, Aqua-scutum ceo Kim Winser resigned suddenly last week after Renown turned down her offer to buy the outerwear, ready-to-wear and accessories brand in a management buyout that she had been working on for about 18 months. Shortly thereafter, the Sunday Times of London reported Renown was in talks to sell Aquascutum to YGM Trading, which is Aquascutum’s Chinese licensee.