PSYCHE, the Teesside fashion outlet, is preparing to expand with plans to open six stores nationwide in the next five years.

The award-winning lifestyle store is said to be in the final stages of negotiations with SKG Equity Finance to bring its brand to major UK cities.

SKG is expected to take a major stake in the store, which beat competition from Selfridges and Harvey Nichols last month to win Drapers Award for Best New Store 2004 and Retailer of the Year.

Psyche boss Steve Cochrane invested more than £3m in creating Psyche in the former Art Deco Uptons store, in Middlesbrough.

Plans are under way to open a street caf and rooftop restaurant, subject to a public consultation.

Mr Cochrane said he was keen to compete with retailers such as Harvey Nichols.