Wyevale Garden Centre’s biggest shareholder, Sir Tom Hunter, has insisted he is not about to lose the majority of his stake in the retailer.

The Times reported that Hunter’s West Coast Capital investment vehicle is in talks with Wyevale’s lender HBOS regarding a debt-for-equity swap, which would result in Hunter giving back around 45 per cent of his shares.

The deal is likely to be concluded by Christmas Eve, according to the paper.

But West Coast Capital has rebuffed the claims, branding them “erroneous”.

In a statement it said: “Whilst negotiations are ongoing and positive, they have not yet concluded but we are confident we will retain a major shareholding in that business which will be well financed going forward - those negotiations may or may not conclude before Christmas.”

Tom Hunter took the debt-laden retailer private in 2006. He has 40 per cent of the shares. HBOS has 19 per cent and is the only lender.

The restructuring is designed to write off much of the£370 million it lent to the 122-store chain, in return for easing the company’s debt covenants, according to The Times.

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