Value retailer Home Bargains is pondering the purchase of famous pottery brand Denby out of administration.
Denby has also caught the eye of other homewares retailers, Sky News reported, although it was uncertain how close a transaction might be and whether they remained in the mix as potential buyers.
Denby fell into administration in late March. Higher business costs and lacklustre consumer spending undermined the business, which was founded in 1809 and also owns the Burleigh brand.
Administrator FRP has overseen Denby since its collapse, and the business has continued to trade, although it has ended manufacturing operations.
Home Bargains, controlled by the founding Morris family, is one of the UK’s biggest and most successful private retailers. Founded as a single store in Liverpool four decades ago, it now has approximately 600 branches and employs 22,000 people. It has ambitions to grow to 1,000 stores.
As well as household goods and other general merchandise categories, Home Bargains also sells food and describes itself as “the largest independent grocer in the country”.
Home Bargains generated an 8% rise in sales to £4.5bn in its most recently reported year, when pre-tax profits rose 11% to £505m. Two years ago, the family were paid a dividend of £1.2bn.
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