At least five bidders interested in Matalan

Discount clothing retailer Matalan has drawn interest from at least five major buy-out firms in the opening stages of a £1.5bn (€1.7bn) auction, it was reported today.

Private equity buyers TPG, Blackstone, Warburg Pincus, BC Partners and Advent International have all submitted initial bids for the company, the Financial Times said.

A sale would net hundreds of millions of pounds in profits for founder John Hargreaves, who took Matalan private in an £827m (€923m) deal backed by £410m (€457m) of debt three years ago.