SHARES in Storehouse, which employs more than 100 at its East Lancashire stores, have jumped on speculation of a £1 billion bid.

retail entrepreneur Philip Green and the multimillionaire Barclay brothers were said to be arranging funds which could be used to buy the ailing group.

The Mothercare-to-Bhs company has been the subject of fevered takeover speculation since a disastrous profit warning in May.

A week later the group's chief executive Keith Edleman quit.

In June the group, formed in the 1980s by Sir Terence Conran, saw its shares jump on rumours rival Debenhams would make an approach.

But Debenhams later denied it was in talks with Storehouse.

One retail analyst said a deal could mean an uncertain future for Bhs.

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