OrotonGroup administrators have backed a proposal to salvage the collapsed retailer.
In a bid from shareholder and creditor Will Vicars, it is proposed he will acquire the company for $25 million.
The fund manager has been negotiating a Deed of Company Arrangement since his nomination as preferred buyer by administrators.
The proposal will see a return to creditors of between 36c to 58c on the dollar, with all staff entitlements and no further store closures.
Vicars has been negotiating with landlords to seek rent cuts of up to 40% to salvage its 50 remaining stores.
Voluntary administrator Vaughan Strawbridge, of Deloitte, confirmed creditors would vote on the proposal at a meeting on March 29.
“The Vicars proposal is superior to other offers received and ensures the best possible return for creditors via a recapitalised business that will provide ongoing roles for employees, and continuing relationships with this iconic Australian brand for suppliers, landlords and other stakeholders,” he said.