BONMARCHE in Newport escaped closure after the chain was put into administration.
A spokesman for the FRP Advisory administrator said that 284 of the 318 Bonmarche stores nationwide remained open and continued to trade, including the branch on the Isle of Wight.
The Peacocks clothing chain has been named the preferred bidder to take over the company.
The FRP advisory spokesman said: “The performance of the business has been reviewed.
“The vast majority of stores continue to trade and are expected to remain open under an agreement with Peacocks.
“Negotiations are ongoing.”
A sign was placed in the Bonmarche shop window on Newport High Street, confirming that the company was placed under administration.
However, customers have been told that the store will remain open.