Laura Ashley tells investors that it has not received a takeover bid

Embattled British retailer Laura Ashley confirmed this evening that it has not received any takeover offers, as speculation mounts over a potential bid from entrepreneur Michael Flacks.

The textile design company’s chairman said today that the group had no intention of selling its controlling stake following a Sunday Telegraph article which said that Flacks is set to approach the group’s Malaysian controlling shareholders about taking the company private.

The homeware chain, which is owned by Malaysian United Industries, addressed the media speculation in the wake of reports that Flacks, a Manchester-born businessman, is eyeing a takeover imminently with the belief that the firm is undervalued.

"As far as I am concerned, there is no takeover bid because there has been no approach whatsoever. If and when an approach is made, the board will discharge its duties as always and assess it on its relative merits," said Andrew Khoo, chairman of Laura Ashley.

Khoo added: "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."

Read more: Laura Ashley issues profit warning as sales slide

The news comes a week after the retailer reported a £1.5m half-year loss amid “difficult” trading conditions, with a slump in its furniture, bed and mirror sales.