Robert Dyas chief executive Steven Round is close to completing a management buyout of the business.

More than 1,200 jobs are set to be saved after a deal was struck between the hardware store chain and its banks.

However, sources close to the situation said the most likely outcome could be the banks taking control of the company but backing the existing management team, as opposed to a management buyout.

Retail Week revealed last week that the chain was considering a range of options to secure its future, with the possibility of a debt for equity swap.

The company hopes the deal will be completed before Easter. Sources said the deal could put an enterprise value of about £30m on Robert Dyas.

Robert Dyas’s owner Change Capital Partners, which bought the chain for £61m five years ago, will no longer be involved. It is expected its equity will be wiped out under the new deal.

hange Capital wrote to the retailer’s main bank Lloyds on Friday, calling for an end to the stand-off over the future of the company. Before this, the company was close to falling into administration.

Lloyds said: “We are supportive of Robert Dyas and are working with the management team to ensure the operating business continues to trade profitably.”