Laura Ashley chairman snuffs out takeover rumours

Laura Ashley on Monday denied receiving a takeover offer after weekend reports that entrepreneur Michael Flacks will make a bid for the struggling retailer.

Manchester-born property entrepreneur Flacks reportedly believes that the home furnishings and womenswear retailer, which last week issued its fourth profit warning in two years, is undervalued and, according to the Sunday Telegraph, plans to approach majority shareholders Malaysian United Industries about taking the company private.

However, Andrew Khoo, chairman of Laura Ashley, said that there had been no bid and "no approach whatsoever" and added that major shareholders had "no intention" of divesting their shareholding, though added that the board was prepared to assess any tabled offer on its relative merits.

"Whilst I understand why potential parties would think we are significantly undervalued, I have complete confidence that we will be able to grow profitably and in a sustainable manner so as to create long-term value for our shareholders. We remain just as committed and passionate about this well-loved brand as when we first decided to invest in Laura Ashley over 20 years ago," said Khoo in a statement on Monday.

Laura Ashley's shares were up 23.77% at 4.01p at 0835 GMT.