Beales In Takeover Bid

Department store group Beales has received a potential takeover approach from an unnamed bidder. The 12-store group confirmed the approach in a statement to the stock exchange following movements in its share price. Beales said that "it has held very preliminary discussions with a third party which may or may not lead to an offer for the company", adding that "discussions are at a very preliminary stage."

The business has been struggling against a general downturn in department store sales, as well as price deflation in the UK fashion sector as value retailers grow market share. Last month, the company reported a 5.5 per cent fall in turnover to £65.3m in the year to October 30 2004, with like-for-like sales for the 11 weeks to January 15 were down 3.6 per cent. The City has speculated that investor Lawdene, which owns 24 per cent of the business, could lead a move to take Beales private.