A rescue package looks set to save hundreds of West Midland bakery jobs.
The proposed deal - involving an unnamed buyer - would see three sections of the collapsed Walsall-based bakers Rathbones sold off.
That news comes after it was revealed that supermarket group Morrisons had stepped in to buy Rathbones' other bakeries in northern England for £15 million. That will secure 400 jobs.
A spokesman for administrators KPMG said it was "confident" another deal with a different buyer would be signed to rescue the Rathbones factory in Walsall.
Rathbones employs 430 people there, along with 14 head office jobs in the town. It is understood the majority of the staff would be kept on if the sale is completed.
KPMG says the proposed deal would also see the Fresha bakery in Leicester and the Rathbones operation in Peterborough sold. Fresha employs 409 people and Rathbones in Peterborough employs 85.
Joint administrator Richard Hill described the Morrisons deal as very good news and said: "We are continuing to focus on selling the remainder of the Rathbones businesses and are close to reaching agreement, subject to contract, with a separate purchaser for the Walsall, Leicester and Peterborough bakeries.
"We are working as hard as we can to secure the sales of the Midlands bakeries."
Morrisons, which took own-label bread from Rathbones before it went into administration, said its deal would ensure continuity of supply for Morrisons and other retailers.
It said the arrangement would also help to provide continued employment for "a substantial number" of Rathbones' staff.
Rathbones, which had 1,550 staff nationally, went into administration early last month after failing to overcome tough trading conditions and a fire at its Carlisle factory in February.
The company had sales of £100 million last year and supplied Tesco and Morrisons.
Morrisons said it had acquired the Rathbones bakeries and assets in partnership with a newly-created company, Rathbone Kear, in which it had taken a majority stake.
It said it had bought vacant freehold property in Lydney in Herefordshire and premises in Wakefield and Wigan, while Rathbone Kear had bought bakery equipment and related assets at the same premises and the leasehold of Rathbones ' bakery site in Middlesbrough.
Rathbones only moved its headquarters to Walsall a year ago. Finedon Mill bought it from Irish-based Greencore for £20.6 million in April last year, alongside a separate deal for Harvestime and Fresha Bakeries from William Price & Sons.
The newly-created company captured around 15 per cent of the market for own-label bread to UK supermarkets.
Morrisons owns the Rathbone Kear joint venture with Harry Kear, who owned and successfully ran Rathbones before it was sold to Greencore in 1997.