An investment firm has confirmed it is in the early stages of a bid for struggling retailer Laura Ashley.

US-based Flacks Group said that it was in the "very preliminary" stages of considering a £20m bid for Laura Ashley, as reported by the BBC. This is despite the current owner saying it has no plans to sell the brand.

Laura Ashley has closed 40 UK stores since 2015. Its Cheltenham store closed recently. It currently has 156 stores in the UK, including one in Cirencester. It also has a concession in Blooms in Quedgeley.

The fashion and homeware retailer's shares fell 1.2 per cent to 3.2p as the offer values the company at 2.75p a share. However, the company remains confident that it can grow in the future.

Last week, Laura Ashley issued a profit warning, telling investors that its full-year results were set to be lower than forecast. It also said it had made zero profit for the last six months of 2018 as sales fell 4.2 per cent.

Laura Ashley was one of the world's leading clothing brands in the 1970s and 1980s.