Rosebys confirmed it is in exclusive discussions with the Indian textiles and chemicals manufacturing company.
A Rosebys spokesman said: 'They see Rosebys as a good strategic fit. We believe GHCL would provide stability and backing for the management to continue to develop the company.'
LDC, along with a 10-strong management team, bought 300-store Rosebys and its 40-store sister chain Fabric Warehouse from Homestyle in 2004 for£51 million.
LDC, which holds a 73.5 per cent stake in the business, wants to sell Rosebys in order to gain funds and accelerate the expansion of the smaller Fabric Warehouse business, which it will retain.
The board of GHCL, part of Indian conglomerate Dalmia Group, has given principal approval to the acquisition of Rosebys and is finalising due diligence.
Retail Knowledge Bank senior partner Robert Clark said: 'It seems that they [LDC] have not made a bundle of money on the chain. Rosebys as a format has not fulfilled its potential and punched its market-leading weight. GHCL would do well to remember they need to use the experience of existing management in terms of operating in a distinctive marketplace.'
Rosebys has received a number of approaches from both domestic and foreign parties interested in acquiring the retailer since the buy-out.
Rosebys received a£10 million injection from LCD to assist its recovery earlier this year, following a tough trading period (Retail Week May 12, 2006). A Rosebys spokesman said: 'Our trading position continues to improve.'
GHCL is also understood to be eyeing other large European and US textile firms in an effort to build its international portfolio. The group acquired US textiles manufacturer Dan River in December for US$17.5 million (£9.5 million). GHCL could not be reached for comment.
Rosebys' turnover was£145 million last year. The retailer has expanded its offer to include electricals and homewares.
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